Question 1

To transfer ownership of a check from one party to another, it is necessary to ________ the check.

Accepted Answer

The answer of To transfer ownership of a check from...

Question 2

Checks issued by a firm and entered in its accounting records that have not been paid by the bank are called ________ checks.

Accepted Answer

The answer of Checks issued by a firm and entered...

Question 3

Sepulveda Inc. uses the perpetual inventory system when recording its cash payments and cash receipts. If the company receives a check from a customer for goods sold and it is received within the discount period, identify the account used to record the discount.

Accepted Answer

The account used to record the discount received by the customer is Sales Discounts. This account is a contra account to the Sales account, and its purpose is to track the discounts given to customers for paying their invoices before the due date.

Question 4

After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. The journal entry to record the reimbursement to the petty cash fund would include:

Accepted Answer

The reimbursement to the petty cash fund involves crediting Cash for the total amount spent, which is $210, to replenish the petty cash fund.

Question 5

Record the following transactions for the month of June 2019 on page 23 of a cash receipts journal. Total, prove, and rule the cash receipts journal as of June 30.
June 4 Collected $850 from Tom Whitney, a credit customer on account.
9 Received a cash refund of $60 for damaged supplies.
10 Laurie Bradley, the owner, invested an additional $10,000 cash in the business.
21 Received a check from Scott White to pay his $2,400 promissory note plus interest of $140.
26 Received $1,700 for cash sales of plus sales tax of $119. There was a cash overage of $5.

Accepted Answer

The answer of Record the following transactions for the month...

Question 6

If a firm's bank reconciliation statement shows a bank statement balance of $16,200, total deposits in transit of $1,800, and total outstanding checks of $1,200, the adjusted bank balance is ________.

Accepted Answer

The answer of If a firm's bank reconciliation statement shows...

Question 7

Checks written by a firm that were paid by the bank are called ________ checks.

Accepted Answer

The answer of Checks written by a firm that were...

Question 8

To record the payment of sales tax owed, the accountant would debit ________ and credit Cash.

Accepted Answer

The answer of To record the payment of sales tax...

Question 9

Read each of the following transactions. Determine the accounts to be debited and credited.
A)Sold merchandise for $200 in cash plus sales tax of $14.
B)Collected $3,400 from credit customers on account.
C)Sold merchandise for $1,600 in cash plus sales tax of $112. There was a cash shortage of $6.

Accepted Answer

The answer of Read each of the following transactions. Determine...

Question 10

Read each of the following transactions. Determine the accounts to be debited and credited.
A)Collected cash in settlement of a $600 promissory note plus interest of $18.
B)Jaime Gomez, the owner, made an additional cash investment of $11,000.
C)Sold merchandise for $3,000 in cash plus sales tax of $210. There was a cash overage of $4.

Accepted Answer

The answer of Read each of the following transactions. Determine...

Question 11

The process of determining why a difference exists between a firm's records and the bank's records and bringing the two sets of records into balance is known as ________ the bank statement.

Accepted Answer

The answer of The process of determining why a difference...

Question 12

Read each of the following transactions. Determine the accounts and amounts to be debited and credited.
A)Issued a check for $2,500 to Jaime Gomez, the owner, as a cash withdrawal for personal use.
B)Issued a check for $75 to establish a petty cash fund.
C)Issued a check for $50 to replenish the petty cash fund. An analysis of the payments from the fund showed the following totals: Supplies, $25; Delivery Expense, $10; Miscellaneous Expense,
$15)

Accepted Answer

The answer of Read each of the following transactions. Determine...

Question 13

A(n)-------is a form received from the bank showing all transactions recorded in the depositor's account during the month.

Accepted Answer

The answer of A(n)-------is a form received from the bank...

Question 14

The Petty Cash Fund account has a(n)________ balance.

Accepted Answer

The answer of The Petty Cash Fund account has a(n)________...

Question 15

A(n)________ is a written promise to pay a specified amount of money at a specified time.

Accepted Answer

The answer of A(n)________ is a written promise to pay...

Question 16

Read each of the following transactions. Determine the accounts to be debited and credited. The company uses the Periodic Inventory method
A)Purchased merchandise for $950 in cash.
B)Issued a check for $752 to remit sales tax to the state sales tax authority.
C)Issued a check for $1,894 to purchase supplies.

Accepted Answer

The answer of Read each of the following transactions. Determine...

Question 17

Read each of the following transactions. Determine the accounts and amounts to be debited and credited. The company uses the Periodic Inventory method.
A)Issued a check for $10,600 to pay a $10,000 note plus interest of $600.
B)Issued a check for $1,500 to pay the monthly rent.
C)Issued a check for $7,840 to a creditor on account for an invoice of $8,000 less a cash discount of $160.

Accepted Answer

The answer of Read each of the following transactions. Determine...

Question 18

If the amount of cash available for deposit is less than the amount listed on the audit tape taken from the cash register, the Cash Short or Over account is________.

Accepted Answer

The answer of If the amount of cash available for...

Question 19

When a bank deducts any amount other than a paid check or electronic payment from a depositor's account, it issues a form called a(n)________memorandum.

Accepted Answer

The answer of When a bank deducts any amount other...

Question 20

Record the following transactions for the month of April, 2019 on page 4 of a cash receipts journal. Total, prove, and rule the cash receipts journal as of April 30.
April 3 Collected $350 from Margo Daub, a credit customer on account.
1 Kevin Sharp, the owner, invested an additional $5,000 cash in the business.
2 Received a cash refund of $30 for damaged supplies.
15 Had cash sales of $5,500 plus sales tax of $385. There was a cash overage of $5.
18 Received $800 from Brian Cobb, a credit customer, in payment of his account.
20 Received a check from Phil Stout to pay his $700 promissory note plus interest of $42.
30 Had cash sales of $3,800 plus sales tax of $266. There was a cash shortage of $5.

Accepted Answer

The answer of Record the following transactions for the month...

Quiz 9: Cash Receipts, Cash Payments, and Banking Procedures

To transfer ownership of a check from one party to another, it is necessary to ________ the check.

Checks issued by a firm and entered in its accounting records that have not been paid by the bank are called ________ checks.

Sepulveda Inc. uses the perpetual inventory system when recording its cash payments and cash receipts. If the company receives a check from a customer for goods sold and it is received within the discount period, identify the account used to record the discount.

After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. The journal entry to record the reimbursement to the petty cash fund would include:

If a firm's bank reconciliation statement shows a bank statement balance of $16,200, total deposits in transit of $1,800, and total outstanding checks of $1,200, the adjusted bank balance is ________.

Checks written by a firm that were paid by the bank are called ________ checks.

To record the payment of sales tax owed, the accountant would debit ________ and credit Cash.

Read each of the following transactions. Determine the accounts to be debited and credited. A)Sold merchandise for $200 in cash plus sales tax of $14. B)Collected $3,400 from credit customers on account. C)Sold merchandise for $1,600 in cash plus sales tax of $112. There was a cash shortage of $6.

The process of determining why a difference exists between a firm's records and the bank's records and bringing the two sets of records into balance is known as ________ the bank statement.

A(n)-------is a form received from the bank showing all transactions recorded in the depositor's account during the month.

The Petty Cash Fund account has a(n)________ balance.

A(n)________ is a written promise to pay a specified amount of money at a specified time.

If the amount of cash available for deposit is less than the amount listed on the audit tape taken from the cash register, the Cash Short or Over account is________.

When a bank deducts any amount other than a paid check or electronic payment from a depositor's account, it issues a form called a(n)________memorandum.