Question

12. Shane Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30 ... Deposits in transit $6,600 900 Notes receivable and interest collected by bank ............... 2,200 Bank charge for check printing Outstanding checks NSF check 450 The adjusted cash balance per books on April 30 is a. $4,310. b. $8,300. c. $7,910. d. $8,330 4.500 13. For which of the following errors should the appropriate amount be added to the balance per book on a bank reconciliation? A) Check written for $43, but recorded as $34. B) Deposit of $500 recorded by bank as $50. C) A returned $200 check recorded by bank as $20. D) Check written for $35, but recorded as $53. 14. An adjusting entry is not required for A) NSF checks. B) collection of a note by the bank. C) Deposits in transit. D) bank service charges. 15. Internal controls are not designed to safeguard assets from A) natural disasters. B) employee theft. C) robbery. D) unauthorized use.

Answer 1

12. B) $8,300

The adjusted cash balance per books on April 30 is $8,300.

13. D) Check written for $35, but recorded as $53.

Reason: Errors happened during the collection of notes by the bank should be added to the balance per book on a bank reconciliation.

14. C) Deposits in transit

No adjusting entry is required for deposits in transit.

15. A) Natural disasters

Internal controls are designed to safeguard assets from employee draft, robbery and unauthorized use. No internal control can be designed to safeguard against natural disasters.