ACC 291T Wk 5 – Apply: Connect Homework (New)

QS 8-6 Petty cash accounting LO P2

1. Brooks Agency set up a petty cash fund for $250. At the end of the current period, the fund contained $177 and had the following receipts: entertainment, $32; postage, $22; and printing, $19.

   Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.

   2. Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry. (Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

• Fund amount is being reduced.checkedCorrect
• Fund amount is being increased.uncheckedCorrect
• Fund is being eliminated.checkedCorrect
• Fund is being established.uncheckedCorrect

Exercise 8-8 Petty cash fund with a shortage LO P2

Waupaca Company establishes a $480 petty cash fund on September 9. On September 30, the fund shows $217 in cash along with receipts for the following expenditures: transportation-in, $60; postage expenses, $69; and miscellaneous expenses, $125. The petty cashier could not account for a $9 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 $540.

Exercise 8-10 Petty cash fund accounting LO P2

Palmona Co. establishes a $190 petty cash fund on January 1. On January 8, the fund shows $101 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $25. Palmona uses the perpetual system in accounting for merchandise inventory.

Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $240 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.

QS 8-8 Bank reconciliation LO P3

Nolan Company’s cash account shows a $29,193 debit balance and its bank statement shows $28,152 on deposit at the close of business on June 30.

801. Outstanding checks as of June 30 total $2,801.
802. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services.
803. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company’s books as $89.
804. June 30 cash receipts of $3,853 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
805. The bank statement included a $34 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.

QS 8-9 Bank reconciliation LO P3

Organic Food Co.’s cash account shows a $5,800 debit balance and its bank statement shows $5,370 on deposit at the close of business on August 31.

1. August 31 cash receipts of $1,540 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement.
2. The bank statement shows a $150 NSF check from a customer; the company has not yet recorded this NSF check.
3. Outstanding checks as of August 31 total $1,420.
4. In reviewing the bank statement, an $110 check written by Organic Fruits was mistakenly drawn against Organic Food’s account.
5. The August 31 bank statement lists $50 in bank service charges; the company has not yet recorded the cost of these services.

Prepare a bank reconciliation using the above information.

Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Del Gato Clinic’s cash account shows a $14,152 debit balance and its bank statement shows $14,479 on deposit at the close of business on June 30.

647. Outstanding checks as of June 30 total $2,647.
648. The June 30 bank statement lists a $80 bank service charge.
649. Check No. 919, listed with the canceled checks, was correctly drawn for $489 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 $498.
650. The June 30 cash receipts of $2,249 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Exercise 8-12 Bank reconciliation LO P3

Prepare its bank reconciliation using the above information.

Exercise 8-13 Adjusting entries from bank reconciliation LO P3

Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

Exercise 8-14 Bank reconciliation LO P3

Wright Company’s cash account shows a $29,100 debit balance and its bank statement shows $27,400 on deposit at the close of business on May 31.

1. The May 31 bank statement lists $180 in bank service charges; the company has not yet recorded the cost of these services.
2. Outstanding checks as of May 31 total $6,400.
3. May 31 cash receipts of $7,000 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement.
4. In reviewing the bank statement, a $480 check written by Smith Company was mistakenly drawn against Wright’s account.
5. The bank statement shows a $440 NSF check from a customer; the company has not yet recorded this NSF check.

Prepare its bank reconciliation using the above information.