- Description
ACC 291T Wk 3 – Practice: Connect Knowledge Check (2021 New)
- Brooks Agency set up a petty cash fund for $140. At the end of the current period, the fund contained $37 and had the following receipts: entertainment, $48; postage, $28; and printing, $27.
Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.
2.Nolan Company’s cash account shows a $26,762 debit balance and its bank statement shows $26,646 on deposit at the close of business on June 30.
- Outstanding checks as of June 30 total $2,194.
- The June 30 bank statement lists $35 in bank service charges; the company has not yet recorded the cost of these services.
- In reviewing the bank statement, a $60 check written by the company was mistakenly recorded in the company’s books as $69.
- June 30 cash receipts of $2,314 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
- The bank statement included a $30 credit for interest earned on the company’s cash in the bank. The company has not yet recorded interest earned.
Prepare a bank reconciliation using the above information.
- Waupaca Company establishes a $410 petty cash fund on September 9. On September 30, the fund shows $171 in cash along with receipts for the following expenditures: transportation-in, $43; postage expenses, $65; and miscellaneous expenses, $128. The petty cashier could not account for a $3 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $475.
- Required information
[The following information applies to the questions displayed below.]
Del Gato Clinic’s cash account shows a $13,016 debit balance and its bank statement shows $13,074 on deposit at the close of business on June 30.
- Outstanding checks as of June 30 total $2,314.
- The June 30 bank statement lists a $20 bank service charge.
- Check No. 919, listed with the canceled checks, was correctly drawn for $289 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $298.
- The June 30 cash receipts of $2,245 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
6.Wright Company’s cash account shows a $30,300 debit balance and its bank statement shows $28,600 on deposit at the close of business on May 31.
- The May 31 bank statement lists $240 in bank service charges; the company has not yet recorded the cost of these services.
- Outstanding checks as of May 31 total $7,000.
- May 31 cash receipts of $7,600 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement.
- In reviewing the bank statement, a $540 check written by Smith Company was mistakenly drawn against Wright’s account.
- The bank statement shows a $320 NSF check from a customer; the company has not yet recorded this NSF check.
Prepare its bank reconciliation using the above information.