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.