Use the following data for the next five questions:

A partially completed bank reconciliation for RACE Company at December 31, 2012, as well as additional data necessary to answer the questions, follow:

RACE COMPANY

Bank Reconciliation

December 31, 2012

Balance per books $ 15,650

Add: (1)

Deduct: (2)

Adjusted cash balance $

Balance per bank statement $ 21,010

Add: (3)

Deduct: (4)

Adjusted cash balance $

Differences between book records and bank statement on December 31, 2012 are as follows:

a. Bank debit memo of $190 for bank fees on overdrawn accounts from December 16-19, 2012.

b. Check no. 2022 (for supplies) was written for $890 but erroneously recorded in Races records as $980.

c. An NSF check of Marcy Co., one of Races customers), was returned by the bank; amount was $1,900.

d. Check no. 2422 (for insurance) was written for $1,720 but erroneously recorded in Races records as $1,270.

e. Deposits in transit at December 31, 2012, totaled $2,720.

f. Outstanding checks at December 31, 2012 totaled $3,700.

g. Bank credit memo of $7,160 for proceeds of note receivable collected by bank for Race on December 28, 2012. $7,000 principal and $160 interest.

h. Bank service charge for December, $280.

i. Bank debit memo for $90 for safe deposit box rental at bank.

j. Bank credit memo for $40 for interest income on Races account.

1. In Races completed bank reconciliation at December 31, 2012, what dollar amount should be deducted from the balance per bank statement [indicated by (4) above]?

a. $3,700

b. $5,600

c. $3,370

d. $4,150

e. None of the above.

2. In Races completed bank reconciliation at December 31, 2012, what dollar amount should be added to the balance per Races records [indicated by (1) above]?

f. $7,290

g. $7,740

h. $7,280

i. $7,160

j. None of the above.

3. In Races completed bank reconciliation at December 31, 2012, what dollar amount should be deducted from the balance per Races records [indicated by (2) above]?

a. $3,100

b. $2,820

c. $2,630

d. $1,100

e. None of the above.

4. In Races completed bank reconciliation at Decemberl 31, 2012, what dollar amount should be added to the balance per bank statement [indicated by (3) above]?

a. $2,810

b. $2,760

c. $2,910

d. $2,720

e. None of the above.

5. In Races journal entries to correct the Cash book balance on December 31, 2012, the entry for the NSF check would be

a. Debit Cash and credit Accounts Receivable for $1,900.

b. Debit Accounts Payable and credit Cash for $1,900.

c. Debit Accounts Receivable and credit Cash for $1,900.