Connect chapter 6 acct 211 - Connect Financial Accounting Chapter 6 1 Waupaca Company establishes a $350 petty cash fund on September 9 On September 30

Connect chapter 6 acct 211 - Connect Financial Accounting...

  • Kenyatta University
  • ACCT 211
  • Test Prep
  • irewhcno
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Connect - Financial Accounting Chapter 6 1. Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $400. Date General Journal Debit Credit Sep 09 Petty cash 350 Cash 350 Sep 30 Merchandise inventory 40 Postage expense 123 Miscellaneous expenses 80 Cash short and over 3 Cash 246 Oct 01 Petty cash 50 Cash 50 ----------------------------------------------------------------------------------------------------------------------------------- 2. Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entry to establish the fund on January 1, reimburse it on January 8, and reimburse the fund and increase it to $450 on January 8, assuming no entry in part 2. ( Hint: Make two separate entries for part 3.) Date General Journal Debit Credit Jan 01 Petty cash 200 Cash 200 Jan 08 Postage expense 74 Merchandise inventory 29 Delivery expense 16 Miscellaneous expenses 43 Cash 162 Jan 08 Petty cash 250 Cash 250 ----------------------------------------------------------------------------------------------------------------------------------- 3. 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. Leave no cells blank. Be certain to select "NA" in fields which are not applicable.)
Bank Balance Book Balance Shown/Not Shown on Reconciliation 1. NSF check from customer is returned on September 25 but not yet recorded by this company. NA Deduct - Cr. Shown 2. Interest earned on the September cash balance in the bank. NA Add - Dr. Shown 3. Deposit made on September 5 and processed by the bank on September 6. NA NA Not Shown 4. Checks written by another depositor but charged against this company’s account. Add NA Shown 5. Bank service charge for September. NA Deduct - Cr. Shown 6. Checks outstanding on August 31 that cleared the bank in September. NA NA Not Shown 7. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s recordkeeper. NA Deduct - Cr. Shown 8. Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company. NA Add - Dr. Shown 9. Checks written and mailed to payees on October 2.

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