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

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Question 21

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A(n) ____________________ check is a check dated some time in the future.

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Question 22

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Included with its bank statement a firm may receive a credit memorandum, which could indicate

A) a bank service charge deducted from the firm's account balance.
B) the bank's return of a dishonored (NSF) check that was issued by a credit customer of the firm.
C) a fee for printing new business checks.
D) an addition to the firm's account balance because the bank collected the amount due on a promissory note from a customer of the firm.

E) A) and B)
F) A) and C)

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Question 23

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Record the following transactions for the month of April 2013 on page 6 of a cash payments journal. Total, prove, and rule the cash payments journal as of April 30.

The individual amounts in the Accounts Payable Debit column of the cash payments journal are posted to the accounts payable subsidiary ledger.

The entry to replenish a petty cash fund includes

Which of the following statements is correct?

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

On December 31, 2013, Designer's Warehouse received a bank statement with an ending balance of $19,500. The balance in the firm's checkbook and Cash account on the same date was $20,580. 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 December 31, 2013. 2. Record entries for any items on the bank reconciliation statement that must be journalized. Date the entries December 31, 2013. Use page 19 of a general journal.

To arrive at the accurate balance on a bank reconciliation statement, it is necessary to deduct an NSF check from the bank statement balance.

A canceled check for $147 erroneously listed on bank statement as $74.

If a payee indicates, as part of the endorsement, the name of the person, firm, or bank to whom the check is to be payable, the payee has made a(n) ____________________ endorsement.

Record the following transactions for the month of November 2013 on page 18 of a cash payments journal. Total, prove, and rule the cash payments journal as of November 30.

A service charge charged by the bank.

Record the following transactions for the month of June 2013 on page 23 of a cash receipts journal. Total, prove, and rule the cash receipts journal as of June 30. June 4 $\quad$ Collected $\$ 700$ from Tom Whitney, a credit customer on account. 9 $\quad$$\quad$$\quad$ Laurie Bradley, the owner, invested an additional $\$ 10,000$ cash in the business. 10 $\quad$$\quad$$\quad$ Received a cash refund of $\$ 60$ for damaged supplies. 21 $\quad$$\quad$ Received a check from Scott White to pay his $\$ 1,400$ promissory note plus interest of $\$ 82$ . 26 $\quad$$\quad$ Had cash sales of $\$ 1,100$ plus sales tax of $\$ 77$ . There was a cash overage of $\$ 10$ .

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

After a bank reconciliation statement is completed, a firm may have to make an entry in its accounting records for

To arrive at an accurate balance on a bank reconciliation statement, deposits in transit should be

A check that has a full endorsement can be further endorsed by any bearer and therefore, is not as safe as a check with a blank endorsement.

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

The entry to record the issuance of a check in settlement of an interest-bearing promissory note includes a debit to Notes Payable, a debit to ____________________, and a credit to Cash.