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    Assignment Accounting 12 - 13

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    cecilia angel
    Here are the journal entries to record petty cash transactions for the month of May, June, and July: May 1 - Petty Cash 150 Cash 150 To establish petty cash fund June 1 - Delivery expense 31.25 Postage expense 39 Miscellaneous expenses 62 Cash over & short 22.5 Cash 154.75 To replenish petty cash fund July 1 - Delivery expense 31 Entertainment expense 71 Miscellaneous expenses 44.75 Cash 146.75 To replenish petty cash fund July 10 - Petty Cash 50 Cash 50 To

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    Assignment Accounting 12 - 13

    Uploaded by

    cecilia angel
    1K views10 pages
    Here are the journal entries to record petty cash transactions for the month of May, June, and July: May 1 - Petty Cash 150 Cash 150 To establish petty cash fund June 1 - Delivery expense 31.25 Postage expense 39 Miscellaneous expenses 62 Cash over & short 22.5 Cash 154.75 To replenish petty cash fund July 1 - Delivery expense 31 Entertainment expense 71 Miscellaneous expenses 44.75 Cash 146.75 To replenish petty cash fund July 10 - Petty Cash 50 Cash 50 To

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    Assignment Accounting 12_13

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    Here are the journal entries to record petty cash transactions for the month of May, June, and July: May 1 - Petty Cash 150 Cash 150 To establish petty cash fund June 1 - Delivery expense 31.25 Postage expense 39 Miscellaneous expenses 62 Cash over & short 22.5 Cash 154.75 To replenish petty cash fund July 1 - Delivery expense 31 Entertainment expense 71 Miscellaneous expenses 44.75 Cash 146.75 To replenish petty cash fund July 10 - Petty Cash 50 Cash 50 To

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    1K views10 pages

    Assignment Accounting 12 - 13

    Uploaded by

    cecilia angel
    Here are the journal entries to record petty cash transactions for the month of May, June, and July: May 1 - Petty Cash 150 Cash 150 To establish petty cash fund June 1 - Delivery expense 31.25 Postage expense 39 Miscellaneous expenses 62 Cash over & short 22.5 Cash 154.75 To replenish petty cash fund July 1 - Delivery expense 31 Entertainment expense 71 Miscellaneous expenses 44.75 Cash 146.75 To replenish petty cash fund July 10 - Petty Cash 50 Cash 50 To

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    Ex 8.

    12 Prepare bank reconciliation and adjusting entries


    The information below relates to the Cash account in the ledger of Minton Company.
    Balance September 1 - $17,150, Cash deposited - $64,000.
    Balance September 30 - $17,404; Checks written - $63,746.

    The September bank statement shows a balance of $16,422 on September 30 and the following memoran
    Credits
    Collection of $2,500 note plus interest $ $2,530
    Interest earned on checking account $45

    At September 30, deposits in transit were $5,450 and outstanding checks totaled $2,383.

    Instructions:
    (a) Prepare the bank reconciliation at September 30
    (b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a
    customer on account, and (2) no interest had been accrued on the note.
    NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

    (a) Prepare the bank reconciliation at September 30

    MINTON COMPANY
    Bank Reconciliation
    30-Sep
    Cash balance per bank statement
    Add: Deposits in transit

    Less: Outstanding checks


    Adjusted cash balance per bank

    Cash balance per books


    Add: Collection of funds
    Interest earned on checking account

    Less: NSF check


    Deposit box rent
    Adjusted cash balance per books

    (b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a
    customer on account, and (2) no interest had been accrued on the note.
    30-Sep Collection of Funds
    Collection
    Interest

    30 Cash
    Account Receivable

    30 Account Receivable
    Cash

    30 Account Payable
    Cash

    After you have completed the requirements of E8.12, consider the additional question.
    1 Assume deposits in transit changed to $5,000 and NSF check changed to $875. What would be

    MINTON COMPANY
    Bank Reconciliation
    30-Sep
    Cash balance per bank statement
    Add: Deposits in transit

    Less: Outstanding checks


    Adjusted cash balance per bank

    Cash balance per books


    Add: Collection of funds
    Interest earned on checking account

    Less: NSF check


    Deposit box rent
    Adjusted cash balance per books
    30 and the following memoranda.
    Debits
    NSF check: Richard Nance $425
    Safety deposit box rent $65

    taled $2,383.

    SF check was from a

    a formula in cells with a "?" .

    $ 16,422
    $ 5,450
    21,872
    2,383
    $ 19,489

    $ 17,404
    $ 2,530
    45 2,575
    19,979
    425
    65 490
    $ 19,489

    SF check was from a


    2,530
    2,500
    30

    425
    425

    45
    45

    65
    65

    l question.
    nged to $875. What would be the impact on adjusted cash balance per bank and books?

    $ 16,422
    $ 5,000
    21,422
    2,383
    $ 19,039

    $ 17,404
    $ 2,530
    45 2,575
    19,979
    875
    65 940
    $ 19,039
    E8.11 Prepare bank reconciliation and adjusting entries
    The following information pertains to Crane Video Company.
    1 Cash balance per bank, July 31, $7,263.
    2 July bank service charge not recorded by the depositor $28.
    3 Cash balance per books, July 31, $7,284.
    4 Deposits in transit, July 31, $1,300.
    5 Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The
    collection has not been recorded by Crane, and no interest has been accrued.
    6 Outstanding checks, July 31, $591.

    Instructions
    (a) Prepare a bank reconciliation at July 31.
    (b) Journalize the adjusting entries at July 31 on the books of Crane Video Company.
    NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

    (a) Prepare a bank reconciliation at July 31.

    CRANE VIDEO COMPANY


    Bank Reconciliation
    31-Jul
    Cash balance per bank statement 7,263
    Add: Deposit in transit 1,300
    8,563
    Less: Outstanding Checks 591
    Adjusted cash balance per bank 7,972

    Cash balance per books 7,284


    Add: Collection of electronic funds tranfer 716
    8,000
    Less: Bank Service Charge 28
    Adjusted cash balance per books 7,972

    (b) Journalize the adjusting entries at July 31 on the books of Crane Video Company.

    31-Jul Cash 716


    Fee 20
    Interest Revenue
    Note Receivable

    31 Bank Service Charge 28


    Cash
    After you have completed the requirements of E8.11, consider these additional questions.
    Answers are on the other tab in this file.
    1 Assume deposits in transit changed to $1,600. What would be the new adjusted cash balance pe
    2 Using the new adjusted cash balance per bank in (1) above, what would the balance per books b

    1 Prepare a bank reconciliation at July 31.

    CRANE VIDEO COMPANY


    Bank Reconciliation
    31-Jul
    Cash balance per bank statement $ 7,263
    Add: Deposit in transit 1,600
    8,863
    Less: Outstanding Checks 591
    Adjusted cash balance per bank $ 8,272

    2 Cash balance per books $ 7,284


    Add: Collection of funds 716
    8,000
    Less: Bank service charges 28
    Adjusted cash balance per books $ 7,972
    Company.
    mula in cells with a "?" .

    of Crane Video Company.

    36
    700

    28
    questions.

    adjusted cash balance per bank?


    d the balance per books be before adjustments?
    Challenge exercise 1
    a. Journal Entries
    Date Accounts Title & Explanation Debit Credit
    Petty Cash 150
    1-May Cash 150
    (to establish petty cash fund)
    Delivery expense 31.25
    Postage expense 39
    Miscellaneous expenses 62
    1-Jun
    Cash over & Short 22.5
    Cash 154.75
    (to ereplenish petty cash fund)
    Delivery expense 31
    Entertainment expense 71
    1-Jul Miscellaneous expenses 44.75
    Cash 146.75
    (to replenish petty cash fund)
    Petty Cash 50
    10-Jul Cash 50
    (to increase petty cash limit to $200 )

    b. Esstablishment of Responsibility & Documentation Procedure


    Challenge exercise 2

    a. Two Guys Video Company


    Bank Reconcliation
    31-Jul
    Cash balance per bank statement 7,363
    Add: Deposits in transit 2,200
    Bank error 700 2,900
    10,263
    Less : Outstanding checks 594
    Adjusted cash balance per bank 9,669

    Cash balance per books 8,784


    Add: Collection of note 1,266
    10,050
    Less : Bank service charge 22
    NSF check 350
    Bank error 9 381
    Adjusted cash balance per books 9,669

    b. Journal entries
    Date General Journal Debit Credit
    Cash 1,266
    Miscellaneous expense 20
    31-Jul
    Notes receivable 1,250
    Interest Revenue 36
    Miscellaneous expense 22
    31-Jul
    Cash 22
    Account Receivable 350
    31-Jul
    Cash 350
    Rent Revenue 9
    31-Jul
    Cash 9

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