I. When the check has been encashed II. When through the fault of the creditor the check has been impaired III. When a check has been cleared and credited to creditor’s account IV. When the creditor accepts the check as payment

I. When the check has been encashed II. When through the fault of the creditor the check has been impaired III. When a check has been cleared and credited to creditor’s account IV. When the creditor accepts the check as payment

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section5.2: Bank Reconciliation

Problem 2AYU

See similar textbooks

Related questions

Q: Required information [The following information applies to the questions displayed below.] Trey…

A: Inventory is valued on the basis of different inventory valuation methods such as LIFO, FIFO, or…

Q: A company has beginning inventory for the year of $11,000. During the year, the company purchases…

A: Cost of goods sold = Beginning inventory + Net purchases + Direct expenses - Ending inventory

Q: An "associate" is defined under PAS 28 as Choices A thing in charge of one or more things. B subject…

A: The accounting for investments in associates and the use of the equity method for these investments…

Q: Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO…

A: Statement of Cash Flow - Statement of Cash Flow shows the movement of cash from the financial year.…

Q: On November 11, Holy Grounds Coffee sold $1,872 of coffee beans on account to a customer, terms of…

A: Journal entries are the basic method for recording financial transactions in the books of accounts.…

Q: 3 Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool,…

A: Introduction: A general ledger entry made at the end of an accounting period to indicate any…

Q: With respect to manufacture and sale of shirts, the salary of the factory manager would be…

A: Variable cost is the cost that changes with the change of output but per unit variable cost is fixed…

Q: A company reports the following information for its direct labor. Actual hours of direct labor used…

A: Lets understand the basics. Direct labor rate variance is a variance between the rate at which labor…

Q: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…

A: Calculation of above requirement are as follows

Q: No 1 Name of the account Cash and the balances at the central bank Debit BD millions 343.7 Credit BD…

A: Financial Statements : These are the statement where all expenses, incomes, assets and liabilities…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: calculation of depreciation are as follows

Q: janaruary, Prahbu purchased a new machine for use in the existing production line of his…

A: The Assets are recorded at Cost. The cost of Assets includes Purchase Price, installation cost…

Q: ick correct one Which of the following statements is true? A. Realized gain and recognized gain…

A: If boot is received in a like kind exchange the recognized gain cannot exceed the realized gain is a…

Q: With respect to the manufacture and sale of shirts, the cotton cloth used to make the shirts would…

A: Cotton cloth used to make the shirts is the raw material (direct cost) of the production. Raw…

Q: For each of the procedures described in the table below, identify the audit procedure performed and…

A: Procedure Audit Procedure Audit Procedure Classification a. Requested responses directly from…

Q: The following information pertains to Alpha Computing at the end of 2021: Assets Liabilities Net…

A: Introduction: A dividend is a profit distribution made by a corporation to its shareholders. When a…

Q: er to the ne

A: A. Compute the proceeds from the sale of bonds as follows: A B C (A*B)+(A*C) Period…

Q: Prepare a 2020 income statement for Crane Corporation based on the following information: Cost of…

A: Introduction: An income statement is a financial statement that shows the income as well as expenses…

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: calculation of above requirement are as follows

Q: A) LC Company is deciding whether to use the LIFO or FIFO method. Based on the following data,…

A: The FIFO method of inventory valuation is a method where the stock that comes first is sold out…

Q: What amount is presented in ABC Co's. contract liability? o's statement of financial position as…

Q: The Tri-County Generation and Transmission Association isa nonprofit cooperative organization that…

A: break even point refers to a situation in which there is no profit and loss. In short, we can say…

Q: Reed and Sioux established a partnership and divided their profits as follows: Emerson will receive…

A: A partnership is formed between involved individuals who are considered business associates to…

Q: Royalty Statement Period Ending: Author: Units Sold Gross Units Sold No. of Returns Percent Returned…

A: Royalty Statement as per the given information is produced as under: In Step 1 Screenshot of the…

Q: Valley Company purchases merchandise on account for $6,236 from Corn Company with credit terms of…

A: The cash discount is allowed to buyer, if payment is made within discount period. The FOB shipping…

Q: DETAILS DR CR Management Fees 50,000 Wages and Salaries 124,000…

A: Statement of profit or loss is the statement which shows the revenue or expenditure, which exceeds…

Q: The financial statements of Persimmon Company include the following items: 20X9 20X8 Cash…

A: The ratio analysis helps to analyse the financial statements of the business on basis of various…

Q: Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin…

A: Answer - Part 1 - Journal Entries : s.no Date Accounts Debit Credit 1…

Q: The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: 5) Consolidated income on the consolidated column of the worksheet was $300,000 and minority…

A: Minority interest also known as non controlling interest is an ownership stake of less than 50%…

Q: Ana and 9 of her friends how are all dog lovers would like to start an online store. The online…

A: Forms of business organization refers to the forms that entity formed for the motive of carrying out…

Q: has a 12-year service life and a $120,000 salvage value, and it uses straight-line depreciation.…

A: Annual rate of return :- Annual rate of return by taking Annual profit after tax dividend by Annual…

Q: 2. Last month when Pantok Creations Inc. sold 40,000 units, total sales were P300,000, total…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Smith, Jones and Green are to be equal general partners in the SJG partnership. Smith transferred…

A: Inside basis is the company's tax basis in individual assets When a partner contributes property to…

Q: What is the activity rate for the Product Design activity cost pool

A: Activity Rate :— It is the Ratio between Estimated Overhead Cost & Estimated Activity cost…

Q: Jaimson Energy operates a lease in Hutchinson County, Texas. The lease is burdened with a 1/8…

A: When under an agreement one party gets the right to use asset from another party, in lieu of rent.…

Q: Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay…

A: Introduction: The current rate of return on deposit accounts is known as the market rate of…

Q: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of…

A: FIFO (first in first out) refers to the inventory method under which the inventory is valued on the…

Q: Required information [The following information applies to the questions displayed below.] Mary and…

A: The partnership is a form of business. A partnership is a business in which two or more people come…

Q: Required information [The following information applies to the questions displayed below.] On…

A: Adjusting Entries - Adjusting Entries are the entries that differentiate current period and next…

Q: Concord Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May,…

A: Journal entry: It implies to the recording of company's financial transactions in it's primary book,…

Q: If the total depreciation after 1 year and 2 years in an equipment are 21,255 and 35,731…

A: Under decline balance method depreciation is charges at fixed rate of depreciation on its carrying…

Q: The SSC, a cash-method partnership, has a balance sheet that includes the following assets on…

A: Ordinary income refers to the kind of income which is earned through firm or person that is subject…

Q: ssued 32,000 shares of common stock at $10 per share. Reported a net income of $160,000. Paid…

A: Share Capital : It is the part of capital which is registered for issue of shares to the public…

Q: Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool,…

A: note- all amounts are in thousands ($). supplies expense used = opening balance + purchase -ending…

Q: Allocation to preferred stock $ 2021 4,800 $ 2022 7,000 $ 2023 7,000

A: Introduction:- Shares are mainly classified into two types as follows under:- 1)Common shares…

Q: The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two…

A: Overhead cost per unit is the amount of expense incurred per unit of a product other than direct…

Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…

A: Predetermined overhead rate is used to compute the overhead applied to the manufacturing company.…

Q: Another new freezer is required by a mini-mart, and the first expenditure will be $300,000.…

A: Accounting rate of return = Incremental incomeInvestmentIncremental income = Incremental revenues…

Q: Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be…

A: Warranty liability is the liability of the company that arose due to the warranty for the product…

Question

Check shall produce the effect of payment:
I. When the check has been encashed
II. When through the fault of the creditor the check has been impaired
III. When a check has been cleared and credited to creditor’s account
IV. When the creditor accepts the check as payment

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Meaning of cheque or check:

VIEW

Step 2 Final Answer : Effect of payment by cheque

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following does not explain the differences between the bank statement balance and the customers cash balance? a. Deposit in transit b. Canceled checks c. An NSF check d. Errors e. Interest income
Which of the following statements is correct? a.Outstanding checks are checks not yet issued by the depositor to the payee and not yet reflected on the bank statement. b.Certified checks should be deducted from the total outstanding checks c.If the check contains a conflict between amount in words and amount in figures, it is usually accept by the bank provided, the depositor promises to correct it later within the day. d.In DAIF, the depositor has, on its face, sufficient funds in his account, although it is not available yet at the time the check was drawn, whereas in DAUD, the depositor lacks sufficient funds in his account to pay the check.
Which of the following tasks should the cash disbursement clerk NOT perform?a. review the supporting documents for completeness and accuracyb. prepare checksc. approve the liabilityd. mark the supporting documents paid
How do you account for a bounced check or a dishonored check?
A check was issued by L. The name of the payee written on the face of the check is “Cardo Dalisay from Ang Probinsyano”. What kind of instrument is this? A. Order instrument B. Bearer instrument C. Order and bearer instrument D. Trust Bill
in testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also : a. Approves the voucher for payment b. stamps, perforates or cancel supporting documents c. is denied access to supporting documents d. returns the check to accounts payable
The process of determining any differences between a bank statement balance and a checkbook balance is known as _______________. Calculating bank service charge Calculating outstanding deposits Reconciling the bank statement Issuing a stop payment order
Which of the following would be included in a journal to record an NSF check? a. A debit to Accounts payable and a credit to Cash b. A debit to Cash and a credit to Accounts receivable c. A debit to Accounts receivable and a credit to Cash d. A debit to Miscellaneous expense and a credit to Cash
A check returned by a bank because the issuer’s cash account balance could not cover the check is called a(n) A. canceled check. B. certified check. C. NSF check. D. outstanding check.
Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances?a. The cashier prepares the daily deposit.b. The cashier makes the daily deposit at a local bank.c. The cashier posts the receipts to the accounts receivable subsidiary ledger cards.d. The cashier endorses the checks.
Which of the following best describes a voucher? A supporting document prepared for each cash receipt or disbursement A promise to pay an amount owed within a discount period A written authorization prepared for each check written A written record sent to a payee along with the signed check
a) Bank Correction of an error from posting another customer’s check (disbursement) to thecompany’s account.b) EFT depositc) Loan proceedsd) NSF checkUsing the format shown below, indicate whether each item would appear as a debit or credit memoon the bank statement and whether the item would increase or decrease the balance of thecompany’s account. Increases or Decreases theAppears on the Bank Statement Balance of the company’sItem No. as a Debit or Credit Memo Bank Account______________________________________________________________________________