Question

the may bank statement for accounting services shows a balance of \\$6,300, but the balance per books shows a cash balance of \\$7,980. other information includes the following:

• a check for \\$200 to pay the electric bill was recorded on the books as \\$20.
• included on the bank statement was a note collected by the bank for \\$400 plus interest of \\$30.
• checks outstanding totaled \\$260.
• bank service charges were \\$50.
• deposits in transit were \\$2,140.

the adjusted cash balance at the end of august should be

• \\$7,980.
• \\$9,810.
• \\$8,180.
• \\$7,620.

question 10 (5 points)

the check is written and signed by the

• payer.
• drawer.
• payee.
• drawee.

Explanation:

Reconcile the bank balance

Using the Bank Reconciliation, Adjusted Cash Balance, and Outstanding Checks knowledge points

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Reconcile the book balance

Using the Bank Reconciliation and Adjusted Cash Balance knowledge points

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Identify the party who writes and signs a check

The person or entity that creates, writes, and signs a check directing the bank to pay funds is legally referred to as the drawer.

Answer:

Question 1

• (A) $7,980.
• (B) $9,810.
• (C) $8,180. (Correct answer)
• (D) $7,620.

Question 2

• (A) payer.
• (B) drawer. (Correct answer)
• (C) payee.
• (D) drawee.