How are outstanding checks shown on a bank reconciliation?
What will be an ideal response?
Outstanding checks must be subtracted from the unadjusted bank balance to determine the true cash balance.
Outstanding checks are disbursements that have been properly recorded as cash deductions on the depositor's books. However, the bank has not deducted the amounts from the depositor's bank account because the checks have not yet been presented by the payee to the bank for payment; that is, the checks have not cleared the bank. Outstanding checks must be subtracted from the unadjusted bank balance to determine the true cash balance.
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The Dinho Corporation identified the following data when preparing their April bank reconciliation: Bank statement balance $45,000 Dinho's book balance (before adjustments) ? Outstanding checks 4,500 NSF checks 1,400 Service charges 300 Deposits in transit 5,000 Interest earned on checking account 25 In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000 . The
correct amount was recorded by the bank as $1,200. What is the adjusted cash balance at the end of April? a. $44,300 b. $45,500 c. $45,000 d. $45,700
The demonstration approach is appropriate for salespeople who use the memorized sales presentation method.
Answer the following statement true (T) or false (F)
Zorn Inc. makes a sale for $300. The company is required to collect sales taxes amounting to 9%. What is the amount that will be credited to the Sales Tax Payable account?
A. $327 B. $300 C. $27 D. $273
Explain the role that power, importance and fascination play in contemporary American law