Question

question 17 (5 points)
the drawee is the

• bank with which the drawer has an account.
• person who reconciles the account.
• person to whom the check is payable.
• person who writes the check.

question 18 (5 points)
using the following information, calculate the adjusted cash balance at the end of april.

bank statement ending cash balance	$2,000
general ledger cash balance ending	3,250
bank monthly service charge	45
deposits in transit	2,500
outstanding checks	1,500
nsf check returned with bank statement	205

• $3,000
• $5,500
• $4,250
• $4,000

Explanation:

Identify the definition of the drawee

Using the Drawer and Drawee knowledge point

• The drawer is the party who writes and signs the check.
• The payee is the party to whom the check is made payable.
• The drawee is the bank or financial institution holding the drawer's account that is ordered to pay the funds.

Calculate the adjusted cash balance from the bank statement

Using the Adjusted Cash Balance, Deposits in Transit, and Outstanding Checks knowledge points

$$
LATEXBLOCK0
$$

Verify the adjusted cash balance from the general ledger

Using the Adjusted Cash Balance knowledge point

$$
LATEXBLOCK1
$$

Both methods yield an adjusted cash balance of \(\$3,000\).

Answer:

Question 17

• bank with which the drawer has an account. (Correct answer)
• person who reconciles the account.
• person to whom the check is payable.
• person who writes the check.

Question 18

• \$3,000 (Correct answer)
• \$5,500
• \$4,250
• \$4,000