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    Marcus Company and Creative Inc.

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    7. Marcus Company developed the following reconciling information in preparing its September bank reconciliation:
    Cash balance per bank, 9/30 $11,000
    Note receivable collected by bank 6,000
    Outstanding checks 9,000
    Deposits-in-transit 4,500
    Bank service charge 75
    NSF 1,200

    Using the above information, determine the cash balance per books (before adjustments) for the Marcus Company.
    $9,775
    $15,725
    $15,500
    $1,775

    8. During 2007, Creative Inc. has monthly cash expenses of $150,000. On December 31, 2007, their cash balance is $1,550,000. The ratio of cash to monthly cash expenses is _______.
    9.7
    10.3
    10.7
    11.1

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    7. Marcus Company developed the following reconciling information in preparing its September bank reconciliation:
    Cash balance per bank, 9/30 $11,000
    Note receivable collected by bank 6,000
    Outstanding checks 9,000
    Deposits-in-transit 4,500
    Bank service ...

    Solution Summary

    This solution is comprised of a detailed explanation to determine the cash balance per books (before adjustments) for the Marcus Company and ratio of cash to monthly cash expenses for Creative Inc.

    $2.19

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