If $2,000 is withdrawn from the bank by a customer, the bank's Assets rise O Assets and liabilities decrease )Assets decrease and liabilities rise Liabilities decrease and assets rise
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- To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. issued stock for cash $20,000 B. purchased supplies inventory on account $1,800 C. paid employee salaries; assume it was current days expenses $950 D. paid note payment to bank (principal only) $1,200 E. collected balance on accounts receivable $4,750The bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Prepare the correcting journal entry.Interest on Loan account, debited by the bank will a. Decrease in Bank book balance. b. Increase in Bank book balance. c. Increase in Cash book balance. d. Decrease in Cash book balance.
- Show how each of the following would initially affect a bank’s assets liabilities. Someone makes $1000 deposit into a checking account. A bank makes a loan of $1000 by establishing a checking account for $1000 The loan described in part (B) is spent. A bank must write off a loan because the borrower defaults.The bank statement on 31 October 20X7 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by your company for $80 had not been presented for payment, and that a cheque for $130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7? A $1,010 overdrawn B $880 overdrawn C $750 overdrawn D $720 overdrawn1. A company has P2,320,000 cash balance per bank statement, P456,000 deposit in transit, P320,000 NSF check and P278,000 outstanding check. What is the adjusted cash balance? A. P2,142,000 B. P2,178,000 C. P2,456,000 D. P2,498,000
- When banks allowed the business to withdraw money even when the account has no funds is known as _______. a. Accounts payable b. Unearned revenues c. Outstanding expenses d. Bank overdraftsANSWER TRUE OR FALSE ( NO NEED TO EXPLAIN ) 1. The book recorded twice a deposit of P 2,000. The book is overstated as compared to bank balance. 2. The bank omits a deposit of P 10,000 for the month. This is subtracted to the book balance. 3. The book recorded twice a deposit of P 1,000, Cash per book is understated as compared to bank balance. 4.Cost of printing checks, or bank documents, charging NSF checks are bank charges. *ANSWER TRUE OR FALSE 2. The bank omits a deposit of P 10,000 for the month. This is subtracted to the book balance. 3. The book recorded twice a deposit of P 1,000, Cash per book is understated as compared to bank balance. 4.Cost of printing checks, or bank documents, charging NSF checks are bank charges.
- What is the amount of Cash received from customers? How much is the net income (loss) of the year 6? What is the amount of cash generated (used) by accounts receivables? What is amount of cash generated (used) by Operations in Year 6? What is ending balance of Cash at the end of Year 6? What is ending balance of Accounts Receivables at the end of Year 6? What is ending balance of Retained Earnings at the end of Year 6?A company recorded its August 15 receipts on its books as P142,000. However, the receipts were actually P124,000. The deposit slip for the bank was prepared correctly as P124,000. What adjustment is needed to the Cash balance per books? A. Increase by P18,000 B. Decrease by P18,000 C. Erase the wrong amount D. No adjustment neededAs on 30th June the Cash Book reports a bank balance of RO21,800; while cheques yet to be presented amount to RO21,560 and deposits yet to be credited by the bank amount to RO36,240. There was dividend collected by the bank RO 2500. What would be the balance as per the Bank Statement? a. 5800 b. 9620 c. 4620 d. 7120 *fast i dont have time plese
