Checking Accounts Answers

When must you sign a deposit slip?a.You must always sign a deposit slip.b.You only need to sign a deposit slip when receiving cash.c.You only need to sign a deposit slip when using an ATM, rather than depositing at the bank.d.You never need to sign a deposit slip. Your account information is enough.

Roberta's monthly bank statement says that she has a balance of 386.29, but Roberta's check register says that her balance is 370.77. Which of the following are still outstanding?I. A $78.17 check to the electric companyII. A $16.15 deposit from Roberta's roommateIII. A $22.67 check to the grocery storeIV. A $62.65 deposit from Roberta's tax returna.I and IIb.II and IIIc.II and IVd.I and IV

Mrs. Jones has received her bank statement and is ready to reconcile it with her checkbook register. Fill out the reconciliation worksheet for Mrs. Jones using the data from her bank statement and checkbook register. Assume all transactions on previous pages have already cleared. Great Bank of Home and WorkKeepItSimple™ Statement for February 2010Beginning balance (01/05/2010): $2340.00Ending balance (02/04/2010): $1864.16Total of credits: $0.00Total of debits: $475.84Date cleared - 01/05/2010Description - Debit card purchase from XYZ Supermarket and Deli LimitedAmount - 145.44Date cleared - 02/04/2010Description - Check 1015, Bis Insurance of North AmericaAmount - $320.40Date cleared - 02/04/2010Description - Monthly service feeAmount - $10.00Reconciliation WorksheetAmount1. Enter the statement closing balance.$2. Enter the sum of any outstanding deposits or credits.$3. Add lines 1 and 2.$4. Enter the sum of any outstanding checks or debits.$5. Subtract line 4 from line 3.$6. Enter your checkbook balance.$Note: Lines 5 and 6 should be equal at the end of the reconciliation. Mrs. Jones’s checkbook register:DateNumPayeePaymentClrDepositBalance1/1/2010 Balance forward 2,340.002,340.001/5/2010DebitXYZ Supermarket145.44 2194.562/1/20101014Rent600.00 1594.562/1/20101015Bis Insurance Company320.40 1274.16Consider what must be done, if anything, in order to finish the reconciliation process. a.Line 6 is $10.00 higher than line 5; look back at the statement to find the discrepancy.b.Any transaction that appears on the register must still be added to the bank statement.c.Add lines 5 and 6 together.d.The rent of $600 is in your checkbook but not on your bank statement.

Stephen used a reconciliation worksheet, but his checkbook balance does not match the final worksheet balance. Evaluate the following list of possible errors that he has made. Decide which items could potentially correct this problem if found and corrected. Item numberName of potential errorExplanation of what to verifyIClearing the checkbookAll the transactions on the statement that match transactions in the checkbook should be marked as cleared in the checkbook.IICorrecting checkbook omissionsAll transactions on the statement that were not found in the checkbook should have been entered into the checkbook.IIIOutstanding credits and debitsVerify that the sum of outstanding credits and the sum of outstanding debits are correct.IVMathVerify that all addition and subtraction has been done correctly and there are no transpositions of numbers.VPrevious reconciliationVerify that the previous reconciliation was performed correctly, and that all cleared items are marked as such in the checkbook.Choose the option below that correctly describes the items that could have caused this problem with Stephen’s reconciliation.a.I, III, IV, and V could cause the problem, but not II.b.I, II, III, and V could cause the problem, but not IV.c.All five of the potential errors could cause this sort of problem.d.I and II could cause the problem since there are no math errors.

Which of the following items are elements of a monthly checking account statement?I. A period (beginning date and ending date)II. A beginning balance and ending balance.III. A detailed list of debits and credits during the period.a.I and IIb.I and IIIc.II and IIId.I, II and III

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Friendly Bank Reconciliation Worksheet Amount 1. Enter the statement closing balance. $ 487 13 2. Enter the sum of any outstanding deposits or credits. $ 186 68 3. Add lines 1 and 2. $ 673 81 4. Enter the sum of any outstanding checks or debits. $ 174 01 5. Subtract line 4 from line 3. $ 499 80 6. Enter your checkbook balance. $ 362 60 Note: Lines 5 and 6 should be equal at the end of the reconciliation. Megan wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Megan should look for in order to find a solution to the problem? a. $325.79 b. $137.20 c. $12.67 d. $313.20 Please select the best answer from the choices provided

Which of the following is not something that you could do with a normal checking account? a. Deposit cash into your account. b. Demand in writing that money be paid to another person from your account. c. Give permission to a merchant to demand money from your account. d. Make purchases or get cash now, and pay back the bank in monthly payments. Please select the best answer from the choices provided

Which of the following must be present for a check to be legitimate?I. Your signatureII. A memo or noteIII. The payeea.I and IIb.III onlyc.I and IIId.I, II, and III

What is a “balance brought forward?”a.The amount of money you transfer from another checking accountb.The amount of money you will owe in the futurec.The amount of money you have from the previous statement periodd.The amount of money you used to open your account

Richard’s checkbook register as of 02/19:Check #DateDescription of TransactionPayment/Debit (-)Fee (-)Deposit/Credit (+)Balance 02/03Deposit $900.00$900.00 02/05Deposit - Paycheck $390.36$1,290.3620102/05Blue Sky Apartments$455.00 $835.3620202/07Renter’s Insurance$125.40 $709.9620302/18Online Clothing Purchase$155.44 $554.52 02/19 Deposit - Paycheck $390.36$944.88 Enter the following transactions into Richard’s checkbook register and state his ending balance:DateTypeDescriptionAmount03/01Check #204Blue Sky Apartments$455.0003/05DEPPayroll automatic deposit$390.3603/08DebitBenny’s Hamburgers and Fries$9.2003/15Check #205Car payment$251.5903/19DEPPayroll automatic deposit$390.36a.$715.79b.$1,009.81c.$780.72d.$880.24