ACC 291T Wk 5 – Practice Connect Knowledge Check (New)

Waupaca Company establishes a $500 petty cash fund on September 9. On September 30, the fund shows $247 in cash along with receipts for the following expenditures: transportation-in, $55; postage expenses, $61; and miscellaneous expenses, $130. The petty cashier could not account for a $7 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 $570.

Required information

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

Del Gato Clinic’s cash account shows a $15,058 debit balance and its bank statement shows $14,049 on deposit at the close of business on June 30.

237. Outstanding checks as of June 30 total $1,237.
238. The June 30 bank statement lists a $40 bank service charge.
239. Check No. 919, listed with the canceled checks, was correctly drawn for $389 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 $398.
240. The June 30 cash receipts of $2,215 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

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.)

Wright Company’s cash account shows a $28,700 debit balance and its bank statement shows $27,000 on deposit at the close of business on May 31.

1. The May 31 bank statement lists $160 in bank service charges; the company has not yet recorded the cost of these services.
2. Outstanding checks as of May 31 total $6,200.
3. May 31 cash receipts of $6,800 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 $460 check written by Smith Company was mistakenly drawn against Wright’s account.
5. The bank statement shows a $480 NSF check from a customer; the company has not yet recorded this NSF check.

Prepare its bank reconciliation using the above information.

Nolan Company’s cash account shows a $28,500 debit balance and its bank statement shows $28,323 on deposit at the close of business on June 30.

833. Outstanding checks as of June 30 total $2,833.
834. The June 30 bank statement lists $25 in bank service charges; the company has not yet recorded the cost of these services.
835. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company’s books as $89.
836. June 30 cash receipts of $3,026 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
837. The bank statement included a $32 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.

1. Brooks Agency set up a petty cash fund for $270. At the end of the current period, the fund contained $192 and had the following receipts: entertainment, $33; postage, $21; and printing, $24.

   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