Linville Company Gathered the Following Reconciling Information in Preparing Its

question 114

Multiple Choice

Linville Company gathered the following reconciling information in preparing its April bank reconciliation: $\begin{array}{lr}\text { Cash balance per books, } 4 / 30 & \$ 17,600 \\\text { Deposits in transit } & 2,400 \\\text { Notes receivable (face, } \$ 5,000 \text { ) and interest collected by bank } & 5,920 \\\text { Bank charge for check printing } & 30 \\\text { Outstanding checks } & 12,000 \\\text { NSF check } & 1,120\end{array}$ Use the following tabular analysis to determine the required adjustment for the notes receivable to Linville's accounts assuming that no interest has been accrued:

• A)Increase Cash $5920 decrease Notes Receivable $5920.
• B)Decrease Cash $5920 increase Interest Expense $920 decrease Notes Payable $5000.
• C)Increase Cash $5920 increase Interest Revenue $920 decrease Notes Receivable $5000.
• D)No adjustment is needed because the bank collected the note.

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Definitions:

Attention Deficits

A condition characterized by difficulty in maintaining focus or paying attention, often associated with disorders such as ADHD.

Visual Search

The process of looking for a specific object or feature among other objects or features, which can occur with or without conscious awareness.

Cognitive Attention

The mental process of concentrating focus on specific stimuli, while excluding other perceivable information.

Perceptual System

The complex network of sensory organs and brain structures that enables an organism to perceive and interpret environmental stimuli.