QUIZ FINANCIAL ACCOUNTING

A check returned by the bank marked "NSF" means

• no service fee.

• not satisfactorily filled-out.

• no signature found.

• not sufficient funds.

In preparing its bank reconciliation for the month of April 2020, Leno, Inc. has available the following information.

Balance per bank statement, 4/30/20 RM76,800

NSF check returned with 4/30/20 bank statement 940

Deposits in transit, 4/30/20 9,000

Outstanding checks, 4/30/20 9,300

Bank service charges for April 60

What should be the adjusted cash balance at April 30, 2020?

• RM75,100.

• RM75,800.

• RM75,920.

• RM76,500.

The cash account shows a balance of $85,000 before reconciliation. The bank statement does not include a deposit of $5,000 made on the last day of the month. The bank statement shows a collection by the bank of $2,400 and a customer’s check for $680 was returned because it was NSF. A customer’s check for $900 was recorded on the books as $1,080, and a check written for $138 was recorded as $183. The correct balance in the cash account was

• RM86,540.

• RM86,585.

• RM87,400.

• RM95,350.

In preparing its bank reconciliation for the month of April 2020, Sells, Inc. has available the following information.

Balance per bank statement, 4/30/20 RM40,290

NSF check returned with 4/30/20 bank statement 1,450

Deposits in transit, 4/30/20 10,200

Outstanding checks, 4/30/20 15,060

Bank service charges for April 60

What should be the adjusted cash balance at April 30, 2020?

• RM33,920.

• RM33,980.

• RM35,370.

• RM35,430.

In preparing its August 31, 2020 bank reconciliation, Oakley Corp. has available the following information:

Balance per bank statement, 8/31/20 €65,490

Deposit in transit, 8/31/20 10,170

Return of customer’s check not sufficient funds, 8/30/16 1,800

Outstanding checks, 8/31/20 5,820

Bank service charges for August 350

At August 31, 2020, Oakley’s adjusted cash balance is

• RM59,670.

• RM59,320.

• RM69,840.

• RM61,140.

On a bank reconciliation, deposits in transit are

• added to the bank balance.

• deducted from the bank balance.

• added to the book balance.

• deducted from the book balance.

A bank reconciliation should be prepared

• whenever the bank refuses to lend the company money.

• when an employee is suspected of fraud.

• to explain any difference between the depositor's balance per books and the balance per bank.

• by the person who is authorized to sign checks.

Deposits in transit

• have been recorded on the company's books but not yet by the bank.

• have been recorded by the bank but not yet by the company.

• have not been recorded by the bank or the company.

• are checks from customers which have not yet been received by the company.

In preparing a bank reconciliation, outstanding checks are

• added to the balance per bank.

• deducted from the balance per books.

• added to the balance per books.

• deducted from the balance per bank.

Each of the following items affect the cash balance per books except

• bank service charges.

• outstanding checks.

• NSF checks.

• notes collected by the bank.