Herzing University Online Bank Reconciliation and Petty Cash Accounting Template

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Business Finance

Herzing University Online

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. On December 31, Surat's Warehouse received a bank statement containing a balance of $19,500. The balance in the firm's checkbook and Cash account on the same date was $20,580. The difference between the two balances is caused by the items listed below. a. A $5,750 deposit made on December 30 does not appear on the bank statement. b. Check 1312 for $970 issued on November 29 and Check 1375 for $3,300 issued on December 30 have not yet been paid by the bank. c. A credit memorandum shows that the bank has collected a $2,200 note receivable and interest of $220 for the firm. d. A service charge of $50 appears on the bank statement. e. A debit memorandum shows an NSF check for $1,050. (The check was issued by R. Donnelley, a credit customer.) f. The firm's records indicate that Check 1316 of December 1 was issued for $1,800 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 $1,600. g. The bank made an error by deducting a check for $1,120 issued by another business from the balance of the account of Designer's Warehouse. Instructions: 1. Prepare a bank reconciliation statement for the firm as of December 31, 2016. 2. Record entries for any items on the bank reconciliation statement that must be journalized. Date the entries December 31, 2016. Surrat Warehouse Bank Reconciliation Balance on Bank Statement Additions 12/31/2016 subtotal Deductions for outstanding checks Total outstanding Checks Adjusted Bank Balance 0 Surants Books Balance in Books Additions SubTotal Deductions SubTotal Adjusted Book Balance Adjusting Entries Date Accounts Debits Credits Petty Cash El Greco Art Gallery had the following petty cash transactions in February of the current y April 3 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 7 Purchased bond paper for the copier for $15.75 that is immediately used. 11 Paid $40.50 COD shipping charges on postage merchandise Paid $7.15 to express mail a contract to a client. 13 15 Reimbursed Adina Sharon, the manager, $73 for business mileage on her car. 21 Purchased stationery for $68.77 that is immediately used. 24 Paid a courier $21 to deliver merchandise sold to a customer, terms FOB destination. 27 Paid $11.60 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 29 Paid $56 for postage expenses. 29 The fund had $23.87 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. 30 The petty cash fund amount is increased by $90 to a total of $440. Required: 1. Prepare the journal entry to establish the petty cash fund. Date Accounts petty Cash Cash Debit Credit 350 350 2. Prepare a petty cash payments report for April with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenditures in each category. Petty Cash Expense Summary Date Category Charge Date Delivery Expense Charge 24-Apr Total Total Mileage Postage Expense Mdse Inventory Transp in Office Supplies Expense Total Reimbursement - 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. No 1 2 Date General Journal Debit Credit
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. On December 31, Surat's Warehouse received a bank statement containing a
balance of $19,500. The balance in the firm's checkbook and Cash account on
the same date was $20,580. The difference between the two balances is caused
by the items listed below.
a. A $5,750 deposit made on December 30 does not appear on the bank statement.
b. Check 1312 for $970 issued on November 29 and Check 1375 for $3,300 issued on
December 30 have not yet been paid by the bank.
c. A credit memorandum shows that the bank has collected a $2,200 note receivable and
interest of $220 for the firm.
d. A service charge of $50 appears on the bank statement.
e. A debit memorandum shows an NSF check for $1,050. (The check was issued by R.
Donnelley, a credit customer.)
f. The firm's records indicate that Check 1316 of December 1 was issued for $1,800 to pay the
month's ren...


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