5. A Chevy Volt costs $29,000 in the United States. Using the exchange rate given in the WSJ’s Currencies & Commodities table earlier in this chapter, what would it cost in Canada?
6. Mark O’Gara rented a truck from Avis Rent-A-Car for the weekend (2 days). The base rental price was $29.95 per day plus 14 ½ cents per mile. Mark drove 410.85 miles. How much does Mark owe?
LU 4-1
7. Name the three types of check endorsements and give an example of each.
8. Gracie’s Natural Superstore issued a payment by check to Staples Corporation from their bank account with Chase Bank. Name the parties of the check
1. Payee
2. Drawer
3. Drawee
LU 4-2
9. What are the five steps to reconciling a bank statement?
10. Kameron Gibson’s bank statement showed a balance of $717.72. Kameron’s checkbook had a balance of $209.50. Check No. 104 for $110.07 and check No. 105 for $15.55 were outstanding. A $620.50 deposit was not on the statement. He has his payroll check electronically deposited to his checking account—the payroll check was for $1,025.10. There was also a $4 teller fee and an $18 service charge. Prepare Kameron Gibson’s bank reconciliation.
11. Carol Stoke receives her April 6 bank statement showing a balance of $859.75; her checkbook balance is $954.25. The bank statement shows an ATM charge of $25.00, NSF fee of $27.00, earned interest of $2.75, and Carol’s $630.15 refund check, which was processed by the IRS and deposited to her account. Carol has two checks that have not cleared No. 115 for $521.15 and No. 116 for $205.50. There is also a deposit in transit for $1,402.05. Prepare Carol’s bank reconciliation.
