Part A: Use the following information to complete the June bank reconciliation for ArcCo:
From the June bank statement: From the company's records:
June 30 cash balance 9,292.18 June 30 cash balance 9,332.92
NSF check from G. Murphy 543.22 Outstanding checks 2,100.12
Deposits in transit 1,597.64
ArcCo
Bank Reconciliation
May 31, 2012
Balance per bank statement, Balance per books,
June 30, June 30,
Add: Add:
Deduct: Deduct:
Adjusted balance, Adjusted balance,
June 30 June 30
Part B: What amount will ArcCo show for cash on its June 30 balance sheet?
Part C: For which item(s) must ArcCo prepare an adjusting entry?
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Q. 2) The information process control goal which relates to preventing fictitious events from being recorded is termed:
a. ensure input validity
b. ensure input accuracy
c. ensure input completeness
d. ensure effectiveness of operations
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Q. 3) Team Shirts ordered T-shirts from its supplier in June. The T-shirts were delivered in July. Team Shirts paid the bill in August and sold the T-shirts in September. When should Team Shirts recognize an expense using accrual accounting?
A) June
B) September
C) August
D) July
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Q. 4) The ____________________ is generally established to pay for small items with cash.
Fill in the blank(s) with correct word
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Q. 5) Bankrupt & Baroque, Inc. borrowed 10,000 on January 1 from E-Z Bank for three months at a 6 annual interest rate. The amount of interest due as of January 31 equals 200.
Indicate whether the statement is true or false
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Q. 6) Using the following information, what is the amount of income from operations? Purchases 32,000 Selling expense 960 Merchandise inventory, September 1 5,700 Merchandise inventory, September 30 6,370 Administrative expense 910 Sales 63,000 Rent revenue 1,200 Interest expense 1,040
a. 32,870
b. 31,910
c. 30,710
d. 29,800
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