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The Cash account of ONECO Delivery Systems reported a balance of $2,480 at May 31. There were outstanding checks totaling $900 and a May 31 deposit in transit of $200. The bank statement listed a May 31 balance of $3,800. Included in the bank balance was a collection of $630 from Superman who owed ONECO a note receivable in that amount. The bank statement also shows a $20 service charge and $10 of interest revenue that ONECO earned on its bank balance. Answer the questions 2-8 given the information presented above.

2. Where in the bank reconciliation will the outstanding checks appear?

a) Subtract from bank balance

b) Add to ledger balance

c) Subtract from ledger balance

d) Add to bank balance

3. Where in the bank reconciliation will the deposit in transit appear?

a. Subtract from ledger balance

b. Subtract from bank balance

c. Add to bank balance

d. Add to ledger balance

Where in the bank reconciliation will the collection of the note receivable appear?

a. Add to ledger balance

b. Add to bank balance

c. Subtract from bank balance

d. Subtract from ledger balance

5. Where in the bank reconciliation will the service charge appear?

a. Add to bank balance

b. Subtract from bank balance

c. Add to ledger balance

d. Subtract from ledger balance

6. Where in the bank reconciliation will the interest revenue appear?

a. Add to ledger balance

b. Subtract from ledger balance

c. Add to bank balance

d. Subtract from bank balance

7. What is the adjusted balance of Cash?

8. Prepare the journal entry or entries needed to correct the Cash account of ONECO.

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