Question

New Store has the following information at August 31 . Two deposits made on August 31 were not on the bank statement, totaling $5.700 • The bank collected an EFT payment on a note receivable for $2.750 of this amount. $150 represented interest on the Hote. August 31 balance in Cash was $12,577. . The bookkeeper forgot to record check #1578 for $843 which was cashed by the bank on August 15th • The balance on the bank statement as of August 31 was $11.000 • Acheck printing service fee of $40 was shown on the bank statement • ANSF check of $100 . Checks 1572. 1606, and 1548. totaling $2.356. were not shown on the bank statement even though the company had sent the checks What is the adjusted bank balance of August 317 O A $15.921 3. $16.560 OC 514 344 OD $13.510

Answer 1

Part 1

New Store
Bank Reconciliation
At August 31
Bank statement balance	11,000	Book balance	12,577
Add:		Add:
Deposit in transit	5,700	EFT and interest collected by bank	2,750
	16,700		15,327
Less:		Less:
Outstanding check	-2,356	Check printing charges	-40
		NSF Check	-100
		Error of recording check 1578	-843
Adjusted bank balance	$14,344	Adjusted book balance	$14,344

Correct option is C.

Part 2

The most frequently used current liabilities are accounts payable, notes payable and accrued liabilities.

Correct option is A.

Part 3

Sales= $39,000

Sales tax rate = 3%

Sales tax payable = Sales x Sales tax rate

= 39,000 x 3%

= $1,170

The following journal entry is needed:

Debit cash $40,170, Credit sales revenue $39,000 and credit sales tax payable $1,70.

Correct option is D.

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