48) Hobby Company has the following items at yoar-end Cash in bank Petty cash Co

Question

48) Hobby Company has the following items at yoar-end Cash in bank Petty cash Commercial paper with maturity of 2 months Employee travel advances $20,000 300 5,500 1,400 Hobby should report cash and cash equivalents of A. $20,000. B. $20,300 C. $25,800 D. $27,200 49) A check returned with the bank statement was correctly paid by the bank for $100. This check was recorded on the books for only $10. Which of the following actions is required on the bank reconciliation? AAdd $90 to the,bank balance. B. Add $90 to the book balance. C. Subtract $90 from the bank balance. D. Subtract $90 from the book balance. 50) In preparing its bank reconciliation for the month of April, the following information was available. Balance per bank statement, 4/30 NSF check returned with 4/30 bank statement Deposits in transit, 4/30 Outstanding checks, 4/30 Bank service charges for April $35,140 450 4,000 5,200 20 What is the correct cash balance on April 30 A. $35,140 B. $34,670 C. $33,940 D. $33,470

Explanation / Answer

Question 48

Solution: Hobby's cash & cash equivalents can be computed as follows;

Total cash & cash equivalents $25,800

Thus, answer is Option C. $25,800

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