1. Martinez Corporation's cash account for September 30, 2014 had a $21,755 balance while the bank's statement indicated a balance of $23,405. Reviewing the bank's statement information, it reveals the following:
a) Outstanding checks $3,985.
b) Deposit in transit $5,140.
c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable.
d) Note collected by the bank $4,580.
e) Bank service charges for the month $85.00.
f) Non-sufficient funds check $890.00.
Prepare a bank reconciliation as of September 30, 2014; then complete the following statement:
The journal entry for the $4,580 note collected by the bank would be:
Debit Note Receivable $4,580; Credit Cash $4,580.
Debit Accounts Payable $4,580; Credit Cash $4,580.
Debit Cash $4,580; Credit Note Receivable $4,580.
No journal entry would be made.
Question 2. Martinez Corporation's cash account for September 30, 2014 had a $21,755 balance while the bank's statement indicated a balance of $23,405. Reviewing the bank's statement information, it reveals the following:
a) Outstanding checks $3,985.
b) Deposit in transit $5,140.
c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable.
d) Note collected by the bank $4,580.
e) Bank service charges for the month $85.00.
f) Non-sufficient funds check $890.00.
Prepare a bank reconciliation as of September 30, 2014; then complete the following statement: The adjusted cash balance per company record books on September 30 would be
$24,560.
$23,560.
$22,550.
$21,860.
Question 3. Martinez Corporation's cash account for September 30, 2014 had a $21,755 balance while the bank's statement indicated a balance of $23,405. Reviewing the bank's statement information, it reveals the following:
a) Outstanding checks $3,985.
b) Deposit in transit $5,140.
c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable.
d) Note collected by the bank $4,580.
e) Bank service charges for the month $85.00.
f) Non-sufficient funds check $890.00.
Prepare a bank reconciliation as of September 30, 2014; then complete the following statement: The check for $1,435 returned with the statement that had been incorrectly recorded as $635 in our accounting records (the check was originally credited to accounts payable on our accounting records) would result in a(n)
Increase in bank statement balance of $800.
Deduction in company's records balance of $800.
Deduction in company's records balance of $1,435.
Increase in the bank statement balance of $1,435.
Question 4. Martinez Corporation's cash account for September 30, 2014 had a $21,755 balance while the bank's statement indicated a balance of $23,405. Reviewing the bank's statement information, it reveals the following:
a) Outstanding checks $3,985.
b) Deposit in transit $5,140.
c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable.
d) Note collected by the bank $4,580.
e) Bank service charges for the month $85.00.
f) Non-sufficient funds check $890.00.
Prepare a bank reconciliation as of September 30, 2014; then complete the following statement:
The journal entry for the outstanding checks would be
Debit Cash $3,985; Credit Accounts Payable $3,985.
Debit Accounts Payable $3,985; Credit Cash $3,985.
Debit Checks Outstanding $3,985; Credit Cash $3,985.
No journal entry would be made.
Question 5. Martinez Corporation's cash account for September 30, 2014 had a $21,755 balance while the bank's statement indicated a balance of $23,405. Reviewing the bank's statement information, it reveals the following:
a) Outstanding checks $3,985.
b) Deposit in transit $5,140.
c) A check for $1,435 returned with the statement had been incorrectly recorded as $635. The check was originally credited to accounts payable.
d) Note collected by the bank $4,580.
e) Bank service charges for the month $85.00.
f) Non-sufficient funds check $890.00.
Prepare a bank reconciliation as of September 30, 2014; then complete the following statement:
The bank collection of the note of $4,580 would be:
Deduction from balance per company's records of $4,580.
Addition to the balance per bank statement of $4,580.
Deduction from the balance per bank statement.
Addition to the balance per company's records.