ACC 291T Wk 3 – Apply Connect Homework (2021.7 New)

During the month of July, Clanton Industries issued a check in the amount of $923 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Multiple Choice

Deduct the check amount from the bank balance.

Add the check amount to the bank balance.

Add the check amount to the book balance of cash.

Deduct the check amount from the book balance of cash.

Make a journal entry in the company records for an error.

The following information is available for Birch Company at December 31:

Money market fund balance   $     2,860

Certificate of deposit maturing June 30 of next year    $     15,700

Postdated checks from customers  $     1,650

Cash in bank account     $     23,131

NSF checks from customers returned by bank     $     720

Cash in petty cash fund  $     270

Inventory of postage stamps  $     25

U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year       $     10,700

________________________________________

Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

Multiple Choice

$37,891

$52,661

$39,331

$41,986

$36,961

In the process of reconciling its bank statement for January, Maxi’s Clothing’s accountant compiles the following information:

Cash balance per company books on January 30  $     5,725

Deposits in transit at month-end    $     2,000

Outstanding checks at month-end  $     620

Bank service charges      $     35

EFT automatically deducted monthly, not yet recorded by Maxi $     580

An NSF check returned on a customer account    $     365

________________________________________

The adjusted cash balance per the books on January 31 is:

Multiple Choice

$4,745

$5,975

$6,125

$6,745

$5,695

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:

December 4    Freight charge for merchandise purchased    $     43

December 7    Delivery charge for shipping to customer     $     67

December 12  Purchase of office supplies    $     32

December 18  Donation to charitable organization      $     51

________________________________________

If, in addition to these receipts, the petty cash fund contains $296.75 of cash, the journal entry to reimburse the fund on December 31 will include:

Multiple Choice

A debit to Petty Cash of $75.

A credit to Office Supplies of $67.

A debit to Transportation-In of $75.

A credit to Cash of $203.25.

A credit to Cash Over and Short of $10.25.

At the end of the day, the cash register’s record shows $1,270, but the count of cash in the cash register is $1,255. The correct entry to record the cash sales is

Multiple Choice

Debit Cash $1,270; credit Sales $1,270.

Debit Cash $1,255; debit Cash Over and Short $15; credit Sales $1,270.

Debit Cash Over and Short $15, credit Sales $15.

Debit Cash $1,270; credit Cash Over and Short $1,255; credit Sales $15.

Debit Cash $1,255; Credit Sales $1,255.

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan’s June bank statement shows $20,361 on deposit in the bank. Ryan’s comparison of the bank statement to its cash account revealed the following:

Deposit in transit    1,850

Outstanding checks 945

________________________________________

Additionally, a $37 check written and recorded by the company correctly, was recorded by the bank as a $73 deduction.

The adjusted cash balance per the bank records should be:

Multiple Choice

$21,266

$21,230

$21,302

$23,192

$17,602

If a check correctly written and paid by the bank for $748 is incorrectly recorded in the company’s books for $784, how should this error be treated on the bank reconciliation?

Multiple Choice

Add $36 to the book balance.

Subtract $36 from the bank’s balance and add $45 to the book’s balance.

Add $36 to the bank’s balance.

Subtract $36 from the bank’s balance.

Subtract $36 from the book balance.

Assume that the custodian of a $735 petty cash fund has $157.50 in coins and currency plus $553.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

Multiple Choice

A credit to Cash Over and Short for $578.

A debit to Cash for $530.

A debit to Cash Over and Short for $24.00.

A credit to Cash for $553.50.

A debit to Petty Cash for $553.50.

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $25,025. Clayborn’s May bank statement shows $22,200 on deposit in the bank. Determine the adjusted cash balance using the following information:

Deposit in transit    $     7,600

Outstanding checks $     6,200

Bank service fees, not yet recorded by company  $     105

A NSF check from a customer, not yet recorded by the company       $     1,320

________________________________________

The adjusted cash balance should be:

Multiple Choice

$24,920

$16,000

$23,600

$29,800

$23,625

The following information is available for Fenton Manufacturing Company at June 30:

Cash in bank account     $     8,355

Inventory of postage stamps  $     93

Money market fund balance   $     14,300

Petty cash balance  $     540

NSF checks from customers returned by bank     $     1,057

Postdated checks received from customers    $     866

Money orders  $     2,157

A nine-month certificate of deposit maturing on December 31 of current year   $     9,900

________________________________________

Based on this information, Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

Multiple Choice

$20,952

$24,252

$24,345

$23,195

$25,352