The following items are from the bank reconciliation of Sunshine Co. for the mon
ID: 2380608 • Letter: T
Question
The following items are from the bank reconciliation of Sunshine Co. for the month ended February 29,2000. Where does each of these items appear in the bank reconciliation? Indicate your answer by marking the appropriate letter as follows:
A= an addition to the bank balance
B= a deduction from the bank balance
C= an addition to the book balance
D= a deduction from the book balance
1. Bank service charages for February
2. Outstanding checks
3. Customer's NSF check returned by the bank
4. Interest earned on this account for the month of February
5. Sunshine Co.'s bookkeeper recorded a check as $693 on the books instead of the correct amount of $963 which appeared on the bank statement.
6. Deposits in transit
7. The bank deposited $450 in Sunshine Co.'s acocunt. This amount actually belongs to Sunshade Inc.
8. The bank charaged Sunshine Co. $25 for check printing.
9. The bank collected a note receivable plus interest revenue
10. Customer's check returned by the bank because the check was improperly dated.
11. A check for $110 written by Sunshine Co. was recorded as $1,100 by the bank
12. An EFT payment was received from a customer
13. An EFT payment was made to a vendor
Florida Co. purchased office furniture on January 3, 1998 for $250,000. The estimated residual value was $25,000 and the estimated useful life was 5 years. Florida Co. uses straight-line depreciation. On January 2,2000, the company revised its original estimate and now believes the useful life of the furniture will be a total of 10 years. The estimated salvage value remains unchanged. What is the depreciation expense for this furniture for 2002.
a. 13,500
b. 16,875
c, 22,500
d. 20,000
Accounts receivable which are 90 days old are:
a. more likely to be collected than accounts 30 days old.
b. equally likely to be collected as accounts 360 days old.
c. less likely to be collected than acocunts 360 days old.
d. less likely to be collected than accounts 30 days old.
Which of the following would be depleted?
a. an oil well
b. land
c. a patent
d. equipment
Two years ago, Ohio Co. wrote off an account receivable from Mr. C. This year, Mr. C paid his account in full. Ohio Co. uses the allowance method of accounting for uncollectibel accounts. What entry(ies) should Ohio. Co. make to record Mr. C's payment?
1. Debit Accounts Receivable and credit Allowance for Doubtful Accounts
2. Debit cash and credit Accounts receivable
3. Debit Cash and credit Allowance for doubtful accounts
a. 1 only
b. 2 only
c. 3 only
d. both 1 and 2
Explanation / Answer
BANK BALANCE AS PER BOOKS - XXXXXXX
1]D= a deduction from the book balance
2]C= an addition to the book balance
3]D= a deduction from the book balance
4]C= an addition to the book balance
5]C= an addition to the book balance AMONNT=270
6]D= a deduction from the book balance
7]C = an addition to the book balance AMOUNT= 450
8]D = a deduction from the book balance AMOUNT = 25
9]C= an addition to the book balance
10]D= a deduction from the book balance
11]C= an addition to the book balance AMOUNT =990
12] NOT APPLICABLE RECORDED IN BANK AS WELL AS BOOKS
13]NOT APPLICABLE RECORDED IN BANK AS WELL AS BOOKS
BALANCE AS PER BANK STATEMENT AFTER GIVING EFFECT TO THE ABOVE ADJUSTMENTS =XXXXXX
BANK BALANCE AS PER BOOKS - XXXXXXX
1]D= a deduction from the book balance
2]C= an addition to the book balance
3]D= a deduction from the book balance
4]C= an addition to the book balance
5]C= an addition to the book balance AMONNT=270
6]D= a deduction from the book balance
7]C = an addition to the book balance AMOUNT= 450
8]D = a deduction from the book balance AMOUNT = 25
9]C= an addition to the book balance
10]D= a deduction from the book balance
11]C= an addition to the book balance AMOUNT =990
12] NOT APPLICABLE RECORDED IN BANK AS WELL AS BOOKS
13]NOT APPLICABLE RECORDED IN BANK AS WELL AS BOOKS
BALANCE AS PER BANK STATEMENT AFTER GIVING EFFECT TO THE ABOVE ADJUSTMENTS =XXXXXX
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.