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The Following Information Is Needed to Reconcile the Cash Balance

Question 96

Multiple Choice

The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5 794.62 is in transit.
• Outstanding cheques total $1 533.25.
• The book balance is $5 695.62.
• The bookkeeper recorded a $1 524.00 cheque as $15 240 in payment of the current month's rent.
• The bank balance at 28 February 2014 was $16 500.25.
• A deposit of $300 was credited by the bank for $3 000.
• A customer's cheque for $1 280 was returned for nonsufficient funds.
• The bank service charge is $70.
Which of the following journal entries is needed to adjust for the dishonoured cheque?


A) The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5 794.62 is in transit. • Outstanding cheques total $1 533.25. • The book balance is $5 695.62. • The bookkeeper recorded a $1 524.00 cheque as $15 240 in payment of the current month's rent. • The bank balance at 28 February 2014 was $16 500.25. • A deposit of $300 was credited by the bank for $3 000. • A customer's cheque for $1 280 was returned for nonsufficient funds. • The bank service charge is $70. Which of the following journal entries is needed to adjust for the dishonoured cheque? A) B) C) D)
B) The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5 794.62 is in transit. • Outstanding cheques total $1 533.25. • The book balance is $5 695.62. • The bookkeeper recorded a $1 524.00 cheque as $15 240 in payment of the current month's rent. • The bank balance at 28 February 2014 was $16 500.25. • A deposit of $300 was credited by the bank for $3 000. • A customer's cheque for $1 280 was returned for nonsufficient funds. • The bank service charge is $70. Which of the following journal entries is needed to adjust for the dishonoured cheque? A) B) C) D)
C) The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5 794.62 is in transit. • Outstanding cheques total $1 533.25. • The book balance is $5 695.62. • The bookkeeper recorded a $1 524.00 cheque as $15 240 in payment of the current month's rent. • The bank balance at 28 February 2014 was $16 500.25. • A deposit of $300 was credited by the bank for $3 000. • A customer's cheque for $1 280 was returned for nonsufficient funds. • The bank service charge is $70. Which of the following journal entries is needed to adjust for the dishonoured cheque? A) B) C) D)
D) The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5 794.62 is in transit. • Outstanding cheques total $1 533.25. • The book balance is $5 695.62. • The bookkeeper recorded a $1 524.00 cheque as $15 240 in payment of the current month's rent. • The bank balance at 28 February 2014 was $16 500.25. • A deposit of $300 was credited by the bank for $3 000. • A customer's cheque for $1 280 was returned for nonsufficient funds. • The bank service charge is $70. Which of the following journal entries is needed to adjust for the dishonoured cheque? A) B) C) D)

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