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After preparing a bank reconciliation a check outstanding for the payment of advertising would be recorded with a

After preparing a bank reconciliation, a check outstanding for the payment of advertising would be recorded with a:

a. Debit to Advertising Expense.

b. Debit to Cash.

c. Credit to Advertising Expense.

d. No entry is needed.

 

 

107. The following data were obtained from the bank statement and from the process of reconciling it:

Bank service charges = $ 20

Deposit outstanding = $150

Interest earned on the bank account = $10

Checks outstanding = $400


Which items should be deducted from and added to the bank balance in completing the reconciliation?

a. Deduct checks outstanding; add service charges and deposit outstanding.

b. Deduct interest earned; add deposit outstanding.

c. Deduct checks outstanding; add deposit outstanding.

d. Deduct deposit outstanding; add checks outstanding.

 

 

108. The balance in the Colt Company’s Cash account on August 31 was $19,700, before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company's accountant found:

 

Checks outstanding$4,300

NSF check     140

Note collected by bank for the Colt Company  1,200

Deposits outstanding  1,800

Bank service fees       60


What is the amount of cash that should be reported in the balance sheet as of August 31?

a. $20,700.

b. $17,200.

c. $18,700.

d. $22,200.

Jan 27 2020 View more View Less

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