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ch 7 - Suggested Practice Problems Chapter 7 BRIEF EXERCISE...

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Suggested Practice Problems Chapter 7 BRIEF EXERCISE 7-6 (a) Outstanding checks—deducted from cash balance per bank. (b) Bank service charge—deducted from cash balance per books. (c) Collection of note by bank—added to cash balance per books. (d) Deposit in transit—added to cash balance per bank. BRIEF EXERCISE 7-11 GUREK COMPANY Cash Budget For January Beginning cash balance ................................................................................... $12,000 Add: Cash receipts .......................................................................................... 60,000 Total available cash ........................................................................................... 72,000 Less: Cash disbursements .............................................................................. 67,000 Excess of available cash over cash disbursements ..................................... 5,000 Financing needed .............................................................................................. 3,000 Ending cash balance ......................................................................................... $ 8,000 EXERCISE 7-6 (a) Cash balance per bank statement ................................. $3,660.20 Add: Deposits in transit ............................................... 590.00 4,250.20 Less: Outstanding checks ............................................ 670.00 Adjusted cash balance per bank ................................... $3,580.20 (b) Cash balance per books ................................................. $3,975.20 Less: NSF check ............................................................ $370.00 Bank service charge .......................................... 25.00 395.00 Adjusted cash balance per books ................................. $3,580.20 7-1
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EXERCISE 7-6 (Continued) (c) Accounts Receivable ................................................................. 370.00 Cash ................................................................................... 370.00 Miscellaneous Expense ............................................................ 25.00 Cash ................................................................................... 25.00 EXERCISE 7-8 (a) DeVries Company Bank Reconciliation July 31, 2007 Cash balance per bank statement ................................................. $7,328 Add: Deposits in transit ................................................................ 1,700 9,028 Less: Outstanding checks ............................................................ 772 Adjusted cash balance per bank ...................................................
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