Cash and Cash equivalent Flashcards

1
Q

Handling Fee of $26 NSF Check

A

Deduct from Book

$26

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2
Q

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

A

Deduct from Bank. Outstanding checks

$10,310

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3
Q

A customer wrote bad check to the company for $444

A

Deduct from Book

$444

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4
Q

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

A

Add to the Bank

$4,890

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5
Q

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.

A

Deduct from the bank

$200

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6
Q

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.

A

Add to the book

$18. They will post in the bank themselves

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7
Q

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

A

Add to the book

$200. Its not a December check its January Check

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8
Q

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

A

Do Nothing

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9
Q

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

A

Deduct from book

$680

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10
Q

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

A

Add to the book

$33

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11
Q

If Check issued to vendor is voided?

A

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

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12
Q

Check error Book amount is higher than Bank

A

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

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13
Q

Bank charged fee

A

Deduct from the book because bank has deducted it

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14
Q

NSF Check returned

A

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

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15
Q

NSF fee

A

Deduct from the book because has deducted this in the balance

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16
Q

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

A

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

17
Q

Note receivable collected by bank

A

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

18
Q

Check issued by the company but not cashed yet

A

Deduct these checks outstanding from the bank

19
Q

Checks received by customers and sent to the bank

A

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

20
Q

Interest earned on the bank account

A

Add to the book balance