CHAPTER 11

1. Award: 5 points
True / False
A check should be written before the check stub is filled out.

True
False
2. Award: 5 points
True / False
Bank service charges should be recorded in the checkbook before reconciling
the bank statement.

True
False
3. Award: 5 points
True / False
Prompt reconciliation of the bank statement is a good way to guard against
disorderly cash records or cash loss.

True
False
4. Award: 5 points
True / False
Outstanding checks and voided checks are the most frequent causes for
differences between the bank statement balance and the checkbook balance.

True
False

CHAPTER 13 HW Page 1
 5. Award: 10 points
Match each item with the correct statement below.
1. The bank form on which the currency and checks to be deposited are listed is
known as the ____.
2. A(n) ____ is an authorized signature that is written or stamped on the back of a
check.
3. ____ are deposits that have been made and recorded in the checkbook but that
do not appear on the bank statement.
4. ____ are the outside controls a business can use to protect its cash and other
assets.
5. The person who signs a check is the ____.
6. With a(n) ____, a business can deposit cash in a bank and write checks against
the account balance.
7. A(n) ____is a check returned by the bank because there are not sufficient funds
in the drawer's checking account to cover the amount of the check.
8. The ____ enables banks to transfers quickly and accurately from one account
to another account without the immediate exchange of checks.
9. A(n) ____ endorsement limits how a check may be handled to protect the check
from being cashed by anyone except the payee.
10. A(n) ____ is a person or business that has cash on deposit at a bank.
11. ____ are checks that have been written but not yet presented to the bank for
payment.
12. ____ are checks that are paid by the bank, deducted from the depositor's
account, and returned with the bank statement.
13. ____ are steps that a business takes to protect its cash and other assets.
14. A demand by the depositor that the bank not honor a certain specific check is
a(n) ____.
15. The bank on which a check is written is the ____.
16. A(n) ____ contains the signature of the person(s) authorized to write checks
on a bank account.
17. The practice of marking a check that contains an error so that it will not be
used is known as ____.

CHAPTER 13 HW Page 2
18. A(n) ____ is a fee charged by the bank for maintaining bank records and for
processing bank statement items for the depositor.
19. The ____ is the person or business to whom a check is written.
20. A(n) ____ is a written order from a depositor telling the bank to pay a stated
amount of cash to the person or business named on the order.
21. An itemized record of all the transactions occurring in a depositor's account
over a given period is a(n) ____.
22. ____ is the process of determining any differences between the balance
shown on the bank statement and the checkbook balance.
1) Electronic funds transfer system
2) Bank statement
3) External controls
4) Voiding a check
5) Bank service charge
6) Drawee
7) NSF check
8) Drawer
9) Canceled checks
10) Payee
11) Outstanding checks
12) Endorsement
13) Deposit slip
14) Internal controls
15) Signature card
16) Stop payment order
17) Checking account
18) Reconciling the bank statement
19) Check
20) Outstanding deposits
21) Depositor
22) Restrictive

CHAPTER 13 HW Page 3
 6. Award: 10 points

Using the following information

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1.  Bank statement balance, November 30: $892.20.
2.  Check book balance, November 30: $621.45.
3.  Outstanding checks: Check 39 for $50.00, Check 40 for $45.00, Check 41 for
$105.50, Check 42 for $100.00, Check 43 for $70.25.
4.  Outstanding deposits: $100.00.

Using the above information, reconcile the bank statement for Abrams Tree
Service. (Round your answers to 2 decimal places. Omit the "$" sign in your
response.)
       

  Outstanding checks:  
(Click to select)
    
(Click to select)
    
(Click to select)
    
(Click to select)
    
(Click to select)
    

      
    
3.  Enter the balance shown on this statement here.  
4.  Enter deposits recorded on your checkbook  
5.  Total Lines 3 and 4 and enter here.  
6.  Enter total checks outstanding here.  
7.  Subtract Line 6 from Line 5. This adjusted bank balance
 
should agree with your check book balance.

CHAPTER 13 HW Page 4
 7. Award: 10 points
Based on the payroll information...
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Based on the payroll information for Romac Electric that follows.

     
Total gross earnings: $2,462.00
Social security tax rate: 6.2%
Medicare tax rate: 1.45%
State unemployment tax rate: 5.4%
Federal unemployment tax rate: 0.8%
     
Find the correct amount of each tax. (Round your answers to 2 decimal places
after performing the calculations. Omit the “$” sign in your response.)
       
        
  1. Social Security Tax Payable (employees' and employer's)  $    
  2. Medicare Tax Payable (employees' and employer's)  $   
  3. State Unemployment Tax Payable  $   
  4. Federal Unemployment Tax Payable  $   

CHAPTER 13 HW Page 5