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Exam 9: Cash Receipts, Cash Payments, and Banking Procedures

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Question 21

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Checks issued by a firm and entered in its records that have not been paid by the bank are called ____________________ checks.

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Question 22

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A firm's bank reconciliation statement shows a book balance of $31,640,an NSF check of $800,and a service charge of $40.Its adjusted book balance is

A) $32,480.
B) $30,800.
C) $30,880.
D) $32,400.

E) A) and D)
F) A) and C)

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Question 23

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Identify the procedure below that is

A(n)____________________ is a form received from the bank showing all transactions recorded in the depositor's account during the month.

A firm's bank reconciliation statement shows a book balance of $15,820,an NSF check of $400,and a service charge of $20.Its adjusted book balance is

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. A canceled check for $147 erroneously listed on bank statement as $74.

Identify the procedure below that is

Read each of the following transactions.Determine the accounts to be debited and credited. A)Issued a check for $10,600 to pay a $10,000 note plus interest of $600. B)Issued a check for $1,500 to pay the monthly rent. C)Issued a check for $7,840 to a creditor on account for an invoice of $8,000 less a cash discount of $160.

If a check written by a firm is not canceled by the bank and returned with the month's bank statement,the firm should

To arrive at an accurate balance on a bank reconciliation statement,a service charge should be

Amounts that appear in the Other Accounts Credit section of the cash receipts journal require individual posting to the general ledger.

After a multicolumn special journal such as a cash receipts journal is totaled,it should be proved to be sure that the debits and credits in the journal are equal.

To arrive at an accurate balance on a bank reconciliation statement,a credit memorandum from the bank for the collection of a note and interest should be

If the amount of cash available for deposit is ____________________ than the amount listed on the audit tape taken from the cash register,the Cash Short or Over account is debited.

To arrive at an accurate balance on a bank reconciliation statement,a debit memorandum for a customer check marked NSF should be

Grouping all transactions involving cash payments together in the cash payments journal strengthens the audit trail.

A strong system of internal control requires that all payments be made by check except those made from a carefully controlled cash fund such as a petty cash fund.

The entry in a firm's accounting records for a credit customer's check that was returned by the bank marked "NSF" would include

Bank Reconciliations are not that important because banks never make errors.

The March bank reconciliation statement for Cab World,Inc. ,showed an NSF check of $300 from J.Brown as well as a bank service charge of $20 for monthly service fees.Select the journal entry required to record these items.