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

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Question 31

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Read each of the following transactions. Determine the accounts to be debited and credited. A) Collected cash in settlement of a $600 promissory note plus interest of $18. B) Jaime Gomez, the owner, made an additional cash investment of $11,000. C) Sold merchandise for $3,000 in cash plus sales tax of $210. There was a cash overage of $4.

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A) Debit Cash; credit Notes Re...

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Question 32

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Purchases Discounts is a contra cost of goods sold account.

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Question 33

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On a bank reconciliation statement, you would find all of the following except

On March 31, 2013, Home Decorating Pavilion received a bank statement with an ending balance of $9,750. The balance in the firm's checkbook and Cash account on the same date was $10,290. The difference between the two balances is caused by the items listed below. Instructions: 1. Prepare a bank reconciliation statement for the firm as of March 31, 2013. 2. Record entries for any items on the bank reconciliation statement that must be journalized. Date the entries March 31, 2013. Use page 4 of a general journal.

A(n) ____________________ is a written promise to pay a specified amount of money at a specified time.

The Petty Cash Fund account has a(n) ____________________ balance.

Merchandise is sold for $8,820, terms 1/10, n/30. Prior to payment, the customer returned $560 of the merchandise. If the invoice is paid within the discount period the amount of the sales discount is:

Read each of the following transactions. Determine the accounts to be debited and credited. A) Sold merchandise for $200 in cash plus sales tax of $14. B) Collected $3,400 from credit customers on account. C) Sold merchandise for $1,600 in cash plus sales tax of $112. There was a cash shortage of $6.

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.

The cash payments journal for Excel Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

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

Read each of the following transactions. Determine the accounts to be debited and credited. A) Purchased merchandise for $950 in cash. B) Issued a check for $752 to remit sales tax to the state sales tax authority. C) Issued a check for $1,894 to purchase supplies.

A check issued for $1,980 to pay a vendor on account was recorded in the firm's records as $1,890; the canceled check was properly listed on the bank statement at $1,980. To arrive at an accurate balance on a bank reconciliation statement, the error should be

A deposit in transit.

To arrive at an accurate balance on a bank reconciliation statement, an error made by the bank in which the bank deducted a check issued by another business from the balance of the company's bank account should be

Of the four categories shown in the form above, which category or categories require journal entries in the firm's records?

To arrive at an accurate balance on a bank reconciliation statement, outstanding checks should be

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.

Match the accounting terms with the description by entering the proper letter in the space provided.

If cash is over, it is entered in the Other Account Credit column of the cash receipts journal and the figure is circled.