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Marcus Company and Creative Inc.

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