Question

The following items appeared on the January 31 bank reconciliations for Dupree Company:

• Outstanding Checks: $74
• Deposit in Transit: $80
• Bank Service Charge: $4
• NSF Check: $40
• Error: Check written by Dupree for $440 was correctly recorded by Dupree, but recorded for $476 by the bank.
• Bank collection of Note Receivable for Dupree: $90

The unadjusted balance per the January 31 bank statement is $1,000.

The adjusted cash balance for the January 31 balance sheet is:

Select one:

a. $970

b. $1,006

c. $1,042

d. $1,088

e. $916

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Question 2

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Question text

The following items appeared on the January 31 bank reconciliations for Shelly Company:

• Outstanding Checks: $100
• NSF Check: $6
• Bank Service Charge: $8
• Deposit in Transit: $80
• Error: Deposit by Shelly for $440 was correctly recorded by Shelly, but recorded for $476 by the bank.
• Bank collection of Note Receivable for Shelly: $170

The unadjusted January 31 book balance is $1,000.

The adjusted cash balance for the January 31 balance sheet is:

Select one:

a. $1,172

b. $1,136

c. $1,192

d. $1,156

e. $1,120

Answer 1

1.

Unadjusted balance per the January 31 bank statement	$1000
Less: Outstanding Checks	(74)
Add: Deposit in Transit	80
Less: error (476-440)	(36)
Adjusted cash balance for the January 31	$970

Option a. is correct answer.

2.

Unadjusted January 31 book balance	$1000
Less: NSF Check	(6)
Less: Bank Service Charge	(8)
Add: Bank collection of Note Receivable	170
Adjusted cash balance for the January 31	$1156

Option d. is correct answer.