Cash and Cash equivalent Flashcards
Handling Fee of $26 NSF Check
Deduct from Book
$26
All checks mailed by the company cleared except check # 2224 of $10310
Deduct from Bank. Outstanding checks
$10,310
A customer wrote bad check to the company for $444
Deduct from Book
$444
A deposit of $4,890 was dropped off in the night deposit on Dec 31. Bank add it following day
Add to the Bank
$4,890
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.
Deduct from the bank
$200
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.
Add to the book
$18. They will post in the bank themselves
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
Add to the book
$200. Its not a December check its January Check
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
Do Nothing
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
Deduct from book
$680
Checking account interest income for the month of Dec in the amount of $33 was recorded by Hersh on Jan 4
Add to the book
$33
If Check issued to vendor is voided?
Add to the book because you have lower the balance to reflect this amount
Check error Book amount is higher than Bank
Add to the book because you have remove more amount from the balance than you should have
Bank charged fee
Deduct from the book because bank has deducted it
NSF Check returned
Deduct from the book, because there is extra amount recorded for this check
NSF fee
Deduct from the book because has deducted this in the balance