post acc111 Unit 5 - Chapter 6 Bank Reconciliation Self Quiz

MATRIX INC. BANK RECONCILIATION Cash balance per bank $9,610 Cash balance per books (general ledger) $7,430 Outstanding checks $2,417 Check mailed to the bank for deposit had not reached the bank by the statement date. $500 NSF check returned by the bank for accounts receivable $225 July interest earned on the bank statement $30 Check no. 781 for supply expense cleared the bank for $268; erroneously recorded in our books for $240 Deposit by Acme Company erroneously credited to the Matrix bank account by the bank $486

Prepare a standard bank reconciliation and answer the multiple choice questions in this exercise. An example of the correct bank reconciliation is shown as feedback to question #7.

• Question 1

0 out of 0 points

How are the outstanding checks of $2,417 shown on the bank reconciliation?

Reduction of the bank balance.

Added to the book balance.

Added to the bank balance.

Outstanding checks are not shown on the bank reconciliation.

• Question 2

0 out of 0 points

How is the check of $500 that was mailed to the bank, but not yet received by the bank, shown on the bank reconciliation?

Reduction of the book balance.

Reduction of the bank balance.

Added to the book balance.

Added to the bank balance.

This item is not shown on the bank reconciliation.

• Question 3

0 out of 0 points

How is the non sufficient funds (NSF) check shown on the bank reconciliation?

Reduction of the book balance.

Reduction of the bank balance.

Added to the book balance.

Added to the bank balance.

This item is not shown on the bank reconciliation.

• Question 4

0 out of 0 points

How is the interest earned shown on the bank reconciliation?

Reduction of the book balance.

Reduction of the bank balance.

Added to the book balance.

Added to the bank balance.

Outstanding checks are not shown on the bank reconciliation.

• Question 5

0 out of 0 points

Check #781 for supply expense was written for $268 and cleared the bank for that amount. However, when Matrix Inc. recorded the check in their books for $240. How is this error shown on the bank reconciliation?

Reduction of the book balance of $268.

Reduction of the bank balance of $268.

Reduction of the book balance of $28.

Reduction of the bank balance of $28.

Reduction of the book balance of $240.

• Question 6

0 out of 0 points

How is the erroneous deposit of $486 shown on the bank reconciliation?

Reduction of the book balance.

Reduction of the bank balance.

Added to the book balance.

Added to the bank balance.

This item is not shown on the bank reconciliation.

• Question 7

0 out of 0 points

What is the up to date ending cash balance (book) on the bank reconciliation?

$7,207

$7,657

$7,707

$7,177

$9,624

• Question 8

0 out of 0 points

What journal entry must be made on the Matrix Inc. books to record the NSF check of $225?

Debit Cash $225; Credit Accounts Receivable $225

Debit Accounts Receivable $225; Credit Cash $225

Debit NSF Expense $225; Credit Cash $225

Debit Cash $225; Credit Interest Income $225

• Question 9

0 out of 0 points

What journal entry must be made on the Matrix Inc. books to record the interest income of $30?

Debit Interest Income $30; Credit Cash $30

Debit Interest Expense $30; Credit Cash $30

Debit Interest Receivable $30; Credit Interest Income $30

Debit Cash $30; Credit Interest Income $30

• Question 10

0 out of 0 points

What journal entry must be made on the Matrix Inc. books to record the check #781 error?

Debit Cash $28; Credit Supply Expense $28

Debit Cash $268; Credit Supply Expense $268

Debit Cash $240; Credit Supply Expense $240

Debit Supply Expense $28; Credit Cash $28

Debit Supply Expense $240; Credit Cash $240

• Question 11

0 out of 0 points

What journal entry must be made on the Matrix Inc. books to record the erroneous deposit of $486?

Debit Cash $486; Credit Bank Account $486

Debit Bank Account $486; Credit Cash $486

Debit Cash $486; Credit Income $486

Debit Cash 486; Credit Expense $486

No entry is made on the Matrix Inc. books.