Treasury stock is shown as an increase in shareholders' equity on the balance sheet.
Indicate whether the statement is true or false
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Q. 2) During a bank reconciliation process,
a. outstanding checks and deposits in transit are added to the bank statement balance
b. outstanding checks are subtracted and deposits in transit are added to the bank statement balance
c. outstanding checks and deposits in transit are subtracted from the bank statement balance
d. outstanding checks are added and deposits in transit are subtracted from the bank statement balance
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Q. 3) The beginning balance in accounts payable was 4,365. The ending balance was 2,995. How is the accounting information for these items reported on the statement of cash flows using the indirect method?
What will be an ideal response?
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Q. 4) A summary account, called a(n) ____________________, is maintained in the general ledger for a subsidiary ledger.
Fill in the blank(s) with correct word
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Q. 5) Thompson Company gathered the following reconciling information in preparing its October bank reconciliation: Cash balance per bank, 10/31 17,000 Note receivable collected by bank 4,800 Outstanding checks 6,500 Deposits-in-transit 3,000 Bank service charge 50 NSF check 2,300 Using the above information, determine the cash balance per books (before adjustments) for the ThompsonCompany.
a. 11,050
b. 19,450
c. 15,950
d. 11,150
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Q. 6) Acme, Inc. accepted a promissory note from NadirCo, who promised to pay Acme 5,000 plus 6 interest at the end of four months. When NadirCo first gives Acme the note, NadirCo should record a ________.
A) note payable of 5,000
B) note receivable of 5,000
C) note payable of 5,100
D) note receivable of 5,100
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