Exercise 8-6 Petty cash fund accounting L.O. P2
[The following information applies to the questions displayed below.]
NetPerks Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $28 in cash along with receipts for the following expenditures: postage, $64; transportation-in, $19; delivery expenses, $36; and miscellaneous expenses, $53. NetPerks uses the perpetual system in accounting for merchandise inventory.
references
1.
value:
2.00 points
Exercise 8-6 Part 1
(1)
Prepare journal entry to establish the fund on January 1.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 1
[removed]
[removed]
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references
2.
value:
2.00 points
Exercise 8-6 Part 2
(2)
Prepare journal entry to reimburse it on January 8.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 8
[removed]
[removed]
[removed]
[removed]
[removed]
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references
3.
value:
2.00 points
Exercise 8-6 Part 3
(3)
Prepare journal entries to both reimburse the fund and increase it to $500 on January 8, assuming no entry in part 2.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 8
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
4.
value:
6.00 points
Exercise 8-7 Bank reconciliation and adjusting entries L.O. P3
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation.
(Select the answers in the appropriate cells and Leave no cells blank be certain to select "NA" in fields which are not applicable.)
Bank Balance
Book Balance
Shown/Not Shown
1.
Bank service charge for September.
2.
Checks written and mailed to payees on October 2.
3.
Checks written by another depositor but charged against this company’s account.
4.
Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company.
5.
Special bank charge for collection of note in part 4 on this company's behalf.
6.
Check written against the company's account and cleared by the bank; erroneously not recorded by the company's recordkeeper.
7.
Interest earned on the September cash balance in the bank.
8.
Night deposit made on September 30 after the bank closed.
9.
Checks outstanding on August 31 that cleared the bank in September.
10.
NSF check from customer is returned on September 25 but not yet recorded by this company.
11.
Checks written by the company and mailed to payees on September 30.
12.
Deposit made on September 5 and processed by the bank on September 6.
5.
value:
6.00 points
Problem 8-2A Establish, reimburse, and adjust petty cash L.O. P2
Shawnee Co. .
Exercise 8-6 Petty cash fund accounting L.O. P2[The following info.docx
1. Exercise 8-6 Petty cash fund accounting L.O. P2
[The following information applies to the questions displayed
below.]
NetPerks Co. establishes a $200 petty cash fund on January 1.
On January 8, the fund shows $28 in cash along with receipts
for the following expenditures: postage, $64; transportation-in,
$19; delivery expenses, $36; and miscellaneous expenses, $53.
NetPerks uses the perpetual system in accounting for
merchandise inventory.
references
1.
value:
2.00 points
Exercise 8-6 Part 1
(1)
Prepare journal entry to establish the fund on January 1.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 1
[removed]
[removed]
2. check my work
eBook Link
View Hint #1
references
2.
value:
2.00 points
Exercise 8-6 Part 2
(2)
Prepare journal entry to reimburse it on January 8.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 8
[removed]
[removed]
[removed]
[removed]
3. [removed]
check my work
eBook Link
View Hint #1
references
3.
value:
2.00 points
Exercise 8-6 Part 3
(3)
Prepare journal entries to both reimburse the fund and increase
it to $500 on January 8, assuming no entry in part 2.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 8
[removed]
[removed]
[removed]
4. [removed]
[removed]
[removed]
[removed]
4.
value:
6.00 points
Exercise 8-7 Bank reconciliation and adjusting entries L.O. P3
A table for a monthly bank reconciliation dated September 30 is
given below. For each item 1 through 12, indicate whether the
item should be added to or deducted from the book or bank
balance, or whether it should not appear on the reconciliation.
(Select the answers in the appropriate cells and Leave no cells
blank be certain to select "NA" in fields which are not
applicable.)
5. Bank Balance
Book Balance
Shown/Not Shown
1.
Bank service charge for September.
2.
Checks written and mailed to payees on October 2.
3.
Checks written by another depositor but charged against this
company’s account.
4.
Principal and interest on a note receivable to this company is
collected by the bank but not yet recorded by the company.
5.
Special bank charge for collection of note in part 4 on this
company's behalf.
6.
Check written against the company's account and cleared by the
bank; erroneously not recorded by the company's recordkeeper.
6. 7.
Interest earned on the September cash balance in the bank.
8.
Night deposit made on September 30 after the bank closed.
9.
Checks outstanding on August 31 that cleared the bank in
September.
10.
NSF check from customer is returned on September 25 but not
yet recorded by this company.
11.
Checks written by the company and mailed to payees on
September 30.
12.
Deposit made on September 5 and processed by the bank on
September 6.
7. 5.
value:
6.00 points
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 $250 to establish the petty cash
fund.
15
Prepared a company check to replenish the fund for the
following expenditures made since May1.
a.
Paid $78 for janitorial services.
b.
Paid $63.68 for miscellaneous expenses.
8. c.
Paid postage expenses of $43.50.
d.
Paid $57.15 to
The County Gazette
(the local newspaper) for an advertisement.
e.
Counted $11.15 remaining in the petty cash box.
16
Prepared a company check for $200 to increase the fund to
$450.
31
The petty cashier reports that $293.39 cash remains in the fund.
A company check is drawn to replenish the fund for the
following expenditures made since May 15.
f.
Paid postage expenses of $48.36.
g.
Reimbursed the office manager for business mileage, $38.50.
9. h.
Paid $39.75 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 $400.
Required:
1.
Prepare journal entries to establish the fund on May 1, to
replenish it on May 15 and on May 31, and to reflect any
increase or decrease in the fund balance on May 16 and May 31.
(Round your answers to 2 decimal places. Omit the "$" sign in
your response.)
Date
General Journal
Debit
Credit
May 1
[removed]
[removed]
12. 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 $26,193 debit
balance, but its July bank statement shows a $28,020 cash
balance.
b.
Check No. 3031 for $1,380 and Check No. 3040 for $552 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 $336 and Check No. 3069 for
$2,148, 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 $1,250
but was erroneously entered in the accounting records as
$1,230.
d.
A credit memorandum enclosed with the July bank statement
indicates the bank collected $9,000 cash on a non-interest-
bearing note for Clark, deducted a $45 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,
13. Jim Shaw. Clark has not yet recorded this check as NSF.
f.
Enclosed with the July statement is a $15 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 $10,152 were placed in
the bank’s night depository on that date, but do not appear on
the July 31 bank statement.
references
6.
value:
3.00 points
Problem 8-4A Part 1
Required:
1.
Prepare the bank reconciliation for this company as of July 31,
2011.
(Input all amounts as positive values. Omit the "$" sign in your
response.)
CLARK COMPANY
Bank Reconciliation
July 31, 2011
Bank statement balance
$ [removed]
Book balance
$ [removed]
Add:
Add:
16. 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
[removed]
[removed]
[removed]
[removed]
[removed]
17. [removed]
[removed]
[removed]
[removed]
Problem 8-5A Prepare a bank reconciliation and record
adjustments L.O. P3
[The following information applies to the questions displayed
below.]
Els Company most recently reconciled its bank statement and
book balances of cash on August 31 and it reported two checks
outstanding, No. 5888 for $1,038.05 and No. 5893 for $484.25.
The following information is available for its September 30,
2011, reconciliation.
From the September 30 Bank Statement
PREVIOUS BALANCE
TOTAL CHECKS AND DEBITS
TOTAL DEPOSITS AND CREDITS
CURRENT BALANCE
18. 16,800.45
9,620.05
11,182.85
18,363.25
CHECKS AND DEBITS
DEPOSITS AND CREDITS
DAILY BALANCE
Date
No.
Amount
Date
Amount
Date
Amount
09/03
5888
1,038.05
09/05
1,103.75
08/31
16,800.45
09/04
5902
731.90
09/12
2,226.90
09/03
15,762.40
09/07
5901
1824.25
09/21
4,093.00
09/04
15,030.50
09/17
24. Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Aug. 31
Balance
15,278.15
Sept. 30
Total receipts
R12
11,358.10
26,636.25
30
Total disbursements
D23
9,099.05
17,537.20
Additional Information
Check No. 5904 is correctly drawn for $2,080 to pay for
computer equipment; however, the recordkeeper misread the
amount and entered it in the accounting records with a debit to
Computer Equipment and a credit to Cash of $2,050. The NSF
check shown in the statement was originally received from a
25. customer, S. Nilson, in payment of her account. Its return has
not yet been recorded by the company. The credit memorandum
is from the collection of a $1,400 note for Els Company by the
bank. The bank deducted a $15 collection fee. The collection
and fee are not yet recorded.
references
8.
value:
3.00 points
Problem 8-5A Part 1
Required:
1.
Prepare the September 30, 2011, bank reconciliation for this
company.
(Round your answers to 2 decimal places. Input all amounts as
positive values. Omit the "$" sign in your response.)
ELS COMPANY
Bank Reconciliation
September 30, 2011
Bank statement balance
$ [removed]
Book balance
$ [removed]
Add:
Add:
28. 2.
Prepare the journal entries to adjust the book balance of cash to
the reconciled balance.
(Round your answers to 2 decimal places. Omit the "$" sign in
your response.)
Date
General Journal
Debit
Credit
Sept. 30
[removed]
[removed]
[removed]
[removed]
[removed]
29. [removed]
[removed]
[removed]
[removed]
AND CHAPTER TEST EXAMPLE SUBMITTED AS DOC:
PROBLEM #1 – 22 points
Greenview Food Store developed the following information in
recording its bank statement for the month of March 20XX.
Balance per books on March 31
$
829
30. Balance per bank on March 31
$
7,030
1)
Checks written in March but still outstanding, $5,200.
2)
Checks written in February but still outstanding, $1,200.
3)
Deposits of March 30 and 31 not yet recorded by bank, $3,100.
4)
NSF check of customer returned by bank, $400.
5)
Check #210 for $675 was correctly issued and paid by the bank
but incorrectly entered in the cash payments
journal as payment on account for $657, for payment to a
creditor.
6)
Bank service charge for March was $31.
7)
A payment on account was incorrectly entered into the cash
payments journal and posted to the accounts payable subsidiary
ledger for $854 when check #318 was correctly prepared for
$584. The check cleared the bank in March.
8)
31. The bank collected a note receivable for the company for $3,000
plus $80 interest.
Instructions:
a)
Prepare a bank reconciliation for the Greenview Food Store for
the month of March 31, 20XX.
b)
Journalize the adjusting entries for Greenview Food Store on
March 31, 20XX.
Bank Reconciliation:
33. PROBLEM
#2 – 18 points
Jenrob Company completed the following selected transactions
34. during January 20XX.
January 1
Established a petty cash fund of $500
15
The cash sales for the day per the register tape were $3,018.
The actual cash received from cash sales were $3,011.
31
Petty cash on hand was $123. Replenished the petty cash fund
for the following
disbursements:
Jan
2
Office supplies, $45
10 Postage due on letter, $29 (Miscellaneous Expense)
14 Office supplies, $56.
17 Postage stamps, $42 (Office Supplies).
35. 20 Express charges on merchandise sold, $136 (Delivery
Expense).
22 Repair to desk, $63 (Miscellaneous Expense).
30 Office supplies, $12.
31
The cash sales for the day per the register tape were $2,812.
The actual cash received from cash sales were $2,822.
31
Decreased the petty cash fund by $100.
General Journal
Date
Description
Debit
Credit
36.
37.
38. What is the balance in the cash short/over account (DR or CR &
$ amount)? Is it a revenue or an expense?
Balance in Cash Short/Over?
______________________________
![Exercise 8-6 Petty cash fund accounting L.O. P2
[The following information applies to the questions displayed
below.]
NetPerks Co. establishes a $200 petty cash fund on January 1.
On January 8, the fund shows $28 in cash along with receipts
for the following expenditures: postage, $64; transportation-in,
$19; delivery expenses, $36; and miscellaneous expenses, $53.
NetPerks uses the perpetual system in accounting for
merchandise inventory.
references
1.
value:
2.00 points
Exercise 8-6 Part 1
(1)
Prepare journal entry to establish the fund on January 1.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 1
[removed]
[removed]](https://image.slidesharecdn.com/exercise8-6pettycashfundaccountingl-230109170126-b9d5c22d/85/Exercise-8-6-Petty-cash-fund-accounting-L-O-P2-The-following-info-docx-1-320.jpg)
![check my work
eBook Link
View Hint #1
references
2.
value:
2.00 points
Exercise 8-6 Part 2
(2)
Prepare journal entry to reimburse it on January 8.
(Omit the "$" sign in your response.)
Date
General Journal
Debit
Credit
Jan. 8
[removed]
[removed]
[removed]
[removed]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)