Basic Accounting Homework (Very Easy for Accountants)
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Ch 8. Homework - Group C (graded) instructions | help
Problem 8-2A Establish, reimburse, and adjust petty cash L.O. P2 Shawnee Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).
May 1 Prepared a company check for $450.00 to establish the petty cash fund. 15 Prepared a company check to replenish the fund for the following expenditures made sinceMay1. a. Paid $140.40 for janitorial services. b. Paid $114.62 for miscellaneous expenses. c. Paid postage expenses of $78.30. d. Paid $102.87 to The County Gazette (the local newspaper) for an advertisement. e. Counted $34.51 remaining in the petty cash box. 16 Prepared a company check for $200 to increase the fund to $650. 31 The petty cashier reports that $442.13 cash remains in the fund. A company check is drawn toreplenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $69.85. g. Reimbursed the office manager for business mileage, $55.61. h. Paid $57.41 to deliver merchandise to a customer, terms FOB destination. 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by$50, leaving a total of $600.
Required: 1. Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to
reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Date General Journal Debit Credit May 1 Petty cash
Cash
May 15 Janitorial expenses Miscellaneous expenses Postage expenses Advertising expense Cash over and short Cash
May 16 Petty cash
Cash
May 31 Postage expenses
Mileage expense
Delivery expense Cash over and short
Cash
May 31 Cash
Petty cash
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Daniel NashPrinciples of Accounting I: acg2001_474426
2. value:1.00 points
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Ch 8. Homework - Group C (graded) instructions | help
Problem 8-4A Prepare a bank reconciliation and record adjustments L.O. P3 [The following information applies to the questions displayed below.]
The following information is available to reconcile Clark Company’s book balance of cash with its bank statement cash balance as of July 31, 2011. a. On July 31, the company’s Cash account has a $25,640 debit balance, but its July bank statement
shows a $28,549 cash balance. b. Check No. 3031 for $1,750 and Check No. 3040 for $867 were outstanding on the June 30 bank
reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $651 and Check No. 3069 for $2,518, both written in July, are not among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,260.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $6,500 cash on a non-interest-bearing note for Clark, deducted a $33 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f. Enclosed with the July statement is a $10 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g. Clark’s July 31 daily cash receipts of $7,652 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.
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Problem 8-4A Part 1 Required: 1. Prepare the bank reconciliation for this company as of July 31, 2011. (Input all amounts as positive
values. Omit the "$" sign in your response.)
CLARK COMPANY Bank Reconciliation
July 31, 2011 Bank statement balance $ Book balance $ Add: Add: Deposit of July 31 Proceeds of note less collection charge
Deduct: Deduct: Checks No. 3031 $ NSF check $ Checks No. 3065 Service charge Checks No. 3069 Error (Check 3056) Adjusted bank balance $ Adjusted book balance $
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Problem 8-4A Part 2 2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with
the reconciled cash balance as of July 31, 2011. (Omit the "$" sign in your response.)
Date General Journal Debit Credit July 31 Cash
Collection expense
Note receivable Accounts receivable-J.Shaw
Cash
Daniel NashPrinciples of Accounting I: acg2001_474426
Miscellaneous expenses
Cash Rent expense
Cash
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©2014 McGraw-Hill Education. All rights reserved.