exercises_on_petty_cash_bank_reconcilation

exercises_on_petty_cash_bank_reconcilation - by check. On...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
PETTY CASH & BANK RECONCILIATION SAMPLE PROBLEMS 1) A company established a $ 100 petty cash fund on March 15. Two weeks later, on March 29, there was $ 6.75 in cash in the fund and the following receipts for these expenditures: Postage: $ 22.75 Transportation – In: $ 18.25 Miscellaneous General Expenses: $ 28 Office Supplies:$24.25 Show the general journal entries; to establish the fund, to reimburse and to increase it to $150 on March 29 2) A company established a $ 125 petty cash fund on August 10. On August 31, there was $34.50 in cash in the fund and the following receipts for these expenditures: Transportation – In: $ 14.75 Miscellaneous General Expenses: $ 27.50 Office Supplies:$46.25 The petty cashier could not account for the $ 2 shortage in the fund. Show the general journal entries; To establish the fund To reimburse it and to reduce it to $ 100 3) Eastside Store deposits all receipts intact on the day received and makes all payments
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: by check. On December 31, after posting was completed, its Cash account showed a $3,775 debit balance, but its December 31 bank statements showed only $3,256.50 on deposit in the bank on that day. Prepare a bank reconsciliation for the store, using the following information: Outstanding checks: $500 Included with the December canceled checks returned by the bank was a $10 debit memorandum for bank services. Check No.642 returned with the canceled checks was correctly drawn for $28 in payment of the telephone bill and was paid by the bank on December 8, but it had been recorded with a debit to Telephone Expense and credit to bank as though it were for $82. The December 31 cash receipts, $1,062.50 were placed in the banks night depository after banking hours on that date and were unrecorded by the bank at the time the December bank statement was prepared....
View Full Document

This note was uploaded on 06/03/2009 for the course FIN 5308 taught by Professor Mckenzie during the Spring '07 term at Youngstown State University.

Ask a homework question - tutors are online