Cash and Cash equivalent

Question 1

Handling Fee of $26 NSF Check

Answer 1

Deduct from Book

$26

Question 2

All checks mailed by the company cleared except check # 2224 of $10310

Answer 2

Deduct from Bank. Outstanding checks

$10,310

Question 3

A customer wrote bad check to the company for $444

Answer 3

Deduct from Book

$444

Question 4

A deposit of $4,890 was dropped off in the night deposit on Dec 31. Bank add it following day

Answer 4

Add to the Bank

$4,890

Question 5

A checked dated Dec 8 was correctly recorded in Books for $2,200 but was cashed for $2,000. The Bank corrected the error on Jan 03.

Answer 5

Deduct from the bank

$200

Question 6

Company is preferred customer of the bank and get a rebate at the end of each month. The fee rebate of $18 is posted following day.

Answer 6

Add to the book

$18. They will post in the bank themselves

Question 7

On Dec 31, The company prepares and record the check for refuse removal for the month of January in the amount of $200. The president of company likes to present the check to the waste removal whose owner is close friend in person and does so on Jan 2. The check clears the bank on Jan 4

Answer 7

Add to the book

$200. Its not a December check its January Check

Question 8

The company’s payroll service withdrew the payroll and taxes for the pay period ended Dec 20 on Dec 24. The amount of the withdrawal was $18,320. The payroll services communicated this info to the company on Dec 25 and the withdrawal was recorded by company in the accounting record on Dec 28

Answer 8

Do Nothing

Question 9

Credit card deposits for the month of Dec totaled $34,000. The Bank reduces the daily deposits for credit card vendor fee of 2%. The fee for Dec credit cards deposits has not been recorded in the books of company

Answer 9

Deduct from book

$680

Question 10

Checking account interest income for the month of Dec in the amount of $33 was recorded by Hersh on Jan 4

Answer 10

Add to the book

$33

Question 11

If Check issued to vendor is voided?

Answer 11

Add to the book because you have lower the balance to reflect this amount

Question 12

Check error Book amount is higher than Bank

Answer 12

Add to the book because you have remove more amount from the balance than you should have

Question 13

Bank charged fee

Answer 13

Deduct from the book because bank has deducted it

Question 14

NSF Check returned

Answer 14

Deduct from the book, because there is extra amount recorded for this check

Question 15

NSF fee

Answer 15

Deduct from the book because has deducted this in the balance

Question 16

Deposit received on last day of year and is not recorded in Book

Answer 16

Add to the book and bank, because in this case the check is not even deposited in the bank

Question 17

Note receivable collected by bank

Answer 17

Add to the book. Bank balance already has this amount.

Question 18

Check issued by the company but not cashed yet

Answer 18

Deduct these checks outstanding from the bank

Question 19

Checks received by customers and sent to the bank

Answer 19

Add these checks (deposits) in transit to the bank. If not added to the general ledger than add in both.

Question 20

Interest earned on the bank account

Answer 20

Add to the book balance