Question 1
On January 2, Jasmines Beauty Supplies Inc. issued Check 3100 for $300 to establish a petty cash fund. On January 31, Check 3159 was issued to replenish the petty cash fund. An analysis of payments from the fund showed these totals: Supplies, $57; Delivery Expense, $98; and Miscellaneous Expense, $33.
Indicate how these transactions would be recorded in a general journal.
Question 2
On January 2, The Public Legal Clinic issued Check 2108 for $430 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journal,
Question 3
Read the following transactions.
Lourdes LLC. keeps a $100 change fund in its cash register. At the end of the day, cash sales per the register tape were $3,280. The cash count was $3,700.
Calculate the amount over or short.
Question 4
Di Stefano Office Supply Company received a bank statement showing a balance of $68,105 as of March 31, 2019. The firms records showed a book balance of $69,499 on March 31. The difference between the two balances was caused by the following items.
A debit memorandum for $52, which covers the banks collection fee for the note (item 6).
A deposit in transit of $3,800.
A check for $250 issued by another firm that was mistakenly charged to Di Stefanos account.
A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.
Outstanding checks: Check 3782 for $2,300; Check 3840 for $153.
A credit memorandum for a $6,400 noninterest-bearing note receivable that the bank collected for the firm.
Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.
Question 4
Di Stefano Office Supply Company received a bank statement showing a balance of $68,105 as of March 31, 2019. The firms records showed a book balance of $69,499 on March 31. The difference between the two balances was caused by the following items.
A debit memorandum for $52, which covers the banks collection fee for the note (item 6).
A deposit in transit of $3,800.
A check for $250 issued by another firm that was mistakenly charged to Di Stefanos account.
A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.
Outstanding checks: Check 3782 for $2,300; Check 3840 for $153.
A credit memorandum for a $6,400 noninterest-bearing note receivable that the bank collected for the firm.
Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.
Question 5
On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,850. The balance in the firm’s checkbook and Cash account on the same date was $10,500. The difference between the two balances is caused by the items listed below.
A $2,975 deposit made on March 30 does not appear on the bank statement.
Check 358 for $535 issued on March 29 and Check 359 for $1,750 issued on March 30 have not yet been paid by the bank.
A credit memorandum shows that the bank has collected a $1,100 note receivable and interest of $110 for the firm.
A service charge of $35 appears on the bank statement.
A debit memorandum shows an NSF check for $575. (The check was issued by Dane Jaris, a credit customer.)
The firm’s records indicate that Check 341 of March 1 was issued for $800 to pay the month’s rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $750.
The bank made an error by deducting a check for $610 issued by another business from the balance of Home Decorating Pavilions account.
Required:
Prepare a bank reconciliation statement for the firm as of March 31, 2019.
Record entries for any items on the bank reconciliation statement that must be journalized.
Question 6
A firm’s bank reconciliation statement shows a book balance of $16,000, an NSF check of $490, and a service charge of $29. Its adjusted book balance is
Multiple Choice
Question 7
Florence Company received a bank statement showing a balance of $12,300 on November 30, 2019. During the bank reconciliation process, Florences accountant noted the following bank errors:
Florence Company received a bank statement showing a balance of $12,300 on November 30, 2019. During the bank reconciliation process, Florences accountant noted the following bank errors:
A check for $146 issued by Florentine, Inc., was mistakenly charged to Florence Companys account.
Check 2782 was written for $200 but was paid by the bank as $1,200.
Check 2920 for $80 was paid by the bank twice.
A deposit for $680 on November 22 was credited by the bank for $860.
Assuming outstanding checks total $1,650, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.
Question 8
During the month a company paid $44.75 for office supplies and $53.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include
Multiple Choice
Question 9
Read each of the following transactions.
1. A) The cash sales per a register tape were $567. The cash count is $546.
B) The cash sales per a register tape were $8,100. The cash count is $7,740.
Prepare the general journal entries to record the above transactions.
Question 10
Teng Corporation received a bank statement showing a balance of $14,450 as of October 31, 2019. The firms records showed a book balance of $14,057 on October 31. The difference between the two balances was caused by the following items.
A debit memorandum for an NSF check from Richard Wolf for $419.
Three outstanding checks: Check 7017 for $119, Check 7098 for $50, and Check 7107 for $1,510.
A bank service charge of $15.
A deposit in transit of $852.
Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. Prepare the necessary journal entries for the year 2019.
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