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Exam 4: Banking

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Question 1

True/False

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Electronic funds transfer does not use paper checks.

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verified

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Question 2

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On May 31, 20xx, Kane Company's bank statement showed a $9,900.50 bank balance. The bank statement also showed that it collected a $1,200 note for Kane Company. A $1,315.80 deposit made on May 31 was in transit. Check number 314 for $48.50 and check number 485 for $465.12 were outstanding. Kane's bank charges $.15 per processed check. This month Kane wrote 68 checks. Kane has a $9,512.88 checkbook balance. Prepare a reconciled balance.

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11ee47e6_3820_395a_bb4b_1d6038b3ec6a_TB8249_11

Question 3

Multiple Choice

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Match the following terms with their definitions. -Smartphone

Electronic funds transfer:

The bank statement for Mat Co. revealed a balance of $900, and the checkbook balance showed $1,420. Checks outstanding totaled $35. A check printing charge for $5 was on the bank statement. There was a $50 NSF shown on the bank statement. There was a $500 deposit in transit. What is the reconciled balance?

The bank statement of Ali Co. indicated a current balance of $32,900.10. The current checkbook balance indicated a balance of $34,509.11. In the reconciliation process a deposit in transit for $6,821.11 was discovered. Check number 600 for $3,988.33 was outstanding. The statement also revealed an NSF of $110.11 along with interest earned by Ali of $1,333.88. The reconciled balance is:

Which of the following are debited from a checking account?

Andy Finn received a bank statement from Jon Bank indicating a balance of $3,000. Based on Andy's check stubs, the ending checkbook balance was $3,600. Checks outstanding were number 110 for $150, number 115 for $90, and number 118 for $75. Andy noticed a deposit in transit for $900 as well as a bank service charge for $15. Complete the reconciliation for Andy.

Match the following terms with their definitions. -Endorsements

On December 31, 20xx, Brown Company's checkbook showed an $8,195.32 balance. Brown's bank statement showed a balance of $8,400.50. Check number 311 for $395.10 and check number 418 for $115.46 were outstanding. A $310.30 deposit was in transit. The bank charged a $10 service charge. The statement showed a $14.92 earned interest income. Complete Brown's bank reconciliation.

Match the following terms with their definitions. -Full endorsements

Valdez Company opened a special checking account. The charge for each check written was $.55 or a $6 a month minimum service charge (whichever is greater). At the beginning of the month, the company checkbook balance was $695.18. Valdez Company wrote 14 checks totaling $312.88. Deposits of $188.10 and $195.10 were made during the month. What is Valdez's checkbook balance to start the next month (include cost of check writing)?

More people use online banking today than 10 years ago.

Crediting an account by the bank means a decrease to that account.

Roger Ran's checkbook balance on April 30, was $1,498, and his bank statement balance for same period was $1,210.88. He discovered from his canceled checks that a check for $30 had been recorded in the check register for $20. The bank deducted a service charge of $12.55 from Roger's account. A deposit mailed on April 29, for $310.99 did not appear on the statement. Roger noticed that checks number 110 and number 118 for $16.88 and $29.54 were not returned with the canceled checks. What is the adjusted reconciled balance?

Jane Co.'s checkbook currently has a balance of $295.10. The bank statement shows a balance of $205.10. The statement revealed interest income of $10.03 along with check charges of $2.95. Jane recorded a $200 check as $150. Deposits in transit were $402.80. Check numbers 85, 88, and 92 for $90.80, $108.10, and $156.82 were not returned with the statement. The reconciled balance is:

Mia Wong's checking account had a balance of $3,100.55 on July 1. After looking at her bank statement, she noticed an NSF for $60.50, a service charge of $12.55, and a note collected for $600. There was one deposit in transit for $400 and no checks outstanding. What is the reconciled checkbook balance?

Calculate the statement balance: $\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Balance of last } \\\text { Statement }\end{array} & \begin{array} { c } \text { Checks } \\\text { Processed }\end{array} & \begin{array} { c } \text { Deposits } \\\text { Received }\end{array} & \begin{array} { c } \text { Service } \\\text { Charge }\end{array} & \begin{array} { c } \text { Balance this } \\\text { Statement }\end{array} \\\hline \$ 910.11 & \$ 615.30 & \$ 291.88 & \$ 12.10 & ? \\\hline\end{array}$

A blank endorsement is the safest type of endorsement.

Match the following terms with their definitions. -Electronic funds transfer