Indicate whether each of the following should be (A) added to the bank statement balance, (B) subtracted from the bank statement balance, (C) added to the checkbook balance, or (D) subtracted from the checkbook when computing the reconciled balance.
a. Outstanding checks
b. Bank fee for printing checks
c. Error in the check register: a deposit of 995 was recorded as 955
d. Deposit which did not appear on the bank statement
e. Service fees for ATM withdrawals
Q. 2The Blue Well Company earned 48,00 . last year. The capital stock of the company consists of 300,00 . of 7.5 preferred stock and 150,00 . of common stock. The directors declare a dividend of half of the entire earnings. Compute the total amount that will be paid to the holders of common stock.
Q. 3Indicate whether each of the following should be (A) added to the bank statement balance, (B) subtracted from the bank statement balance, (C) added to the checkbook balance, or (D) subtracted from the checkbook when computing the reconciled balance.
a. Bank error: A deposit of 280 is shown on the statement as 250
b. NSF check returned to the depositor
c. Automatic transfer for safe deposit fee
d. Error in the checkbook: a check written for 45 was recorded as 54
e. ATM withdrawal not recorded in the depositor's records
Q. 4The Blue Well Company earned 48,00 . last year. The capital stock of the company consists of 300,00 . of 7.5 preferred stock and 150,00 . of common stock. The directors declare a dividend of half of the entire earnings. Compute the total amount that will be paid to the holders of preferred stock.
Q. 5Indicate whether each of the following should be (A) added to the bank statement balance, (B) subtracted from the bank statement balance, (C) added to the checkbook balance, or (D) subtracted from the checkbook when computing the reconciled balance.
a. Deposit in transit to the bank
b. Bank service charge
c. Outstanding checks
d. Interest on the account
e. Error in checkbook: 20 variance due to a check for 55 being recorded as 35
Q. 6The Swartz Company earned 30,00 . last year. The capital stock of the company consists of 200,00 . of 7 preferred stock and 100,00 . of common stock. The directors declare a dividend of half of the entire earnings. Compute the total amount that will be paid to the holders of common stock.
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