Problem 6-2B Pepco Co. estblishes a petty cash find for payments of small amounts. The following transactions involving the petty cash fund occurred in January (the last month of the company's fiscal year). Jan. 3 A company check for $150 is written and made payable to the petty cashier to establish the petty cash fund. Jan. 14 A company check is written to replenish the fund for the following expenditures made since January 3. a. Purchased office supplies for $16.29 that are immediately used up. b. Paid $17.60 COD shipping charges on merchandise purchased for resale, terms FOB ship c. Paid $36.57 to All-Tech for minor repairs to a computer. d. Paid $14.82 for items classified as miscellaneous expenses. e. Counted $62.28 remaining in the petty cash box. Jan. 15 Prepared a company check for $25 to increase the fund to $175. Jan. 31 The petty cashier reports that $17.35 remains in the fund. A company check is written to replenish the fund for the following expenditures made since January 14. f. Paid $40 to the Smart Shopper for an advertisement in January's newsletter. g. Paid $38.19 for postage expenses h. Paid $58 to Take-You-There for delivery of merchandise, terms FOB destination. Jan 31 The company decides that the January 15 increase in the fund was too little. It increases the fund by another $75, leaving a total of $250. * Prepare journal entries to establish the fund on January 3, to replenish it on January 14 and January 31, and to reflect any increase or decrease in the fund balance on January 15 and 31. Problem 6-4B The following information is available to reconcile Style Co.'s book balance of cash with its bank statement cash balance as of December 31, 2011. a. The December 31 cash balance according to the accounting records is $31,743.70, and the bank statement cash balance for that date is $45,091.80. b. Check No. 1273 for $1,084.20 and Check No. 1282 for $390, both written and entered in the accounting records in December, are not among the canceled checks. Two checks, No. 1231 for $2,289 and No. 1242 for $370.50, were outstanding on the most recent November 30 reconciliation. Check No. 1231 is listed with the December canceled checks, but Check No. 1242 is not. c. When the December checks are compared with entries in the accounting records, it is found that Check No. 1267 had been correctly drawn for $2,453 to pay for office supplies but was erroneously entered in the accounting records as $2,453. d. Two debit memoranda ae enclosed with the statement and are unrecorded at the time of the reconciliation. One debit memorandum is for $749.50 and dealt with a NSF check for $732 received from a customer, Titus Industries, in payment of its account. The bank assessed a $17.50 fee for processing it. The second debit memorandum is a $79 charge for check printing. Style did not record these transactions before receiving the statement. e. A credit memorandum indicates that the bank collected $20,00 cash on a note receivable for the company, deducted a $20 collection fee, and credited the balance to the company's Cash account . Style did not record this transaction before receiving the statement. f. Style's December 31 daily cash receipts of $7,66.10 were placed in the bank's night depository on that date, but do not appear on the December 31 bank statement. * 1) Prepare the bank reconciliation for this company as of December 31, 2011. 2) Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of December 31, 2011.
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