Week6_ch6_solutions [Uploaded]

Week6_ch6_solutions [Uploaded] - FB2100 Accounting I...

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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 6 – Chapter 6 Exercise 6-5 (20 minutes) 1. Sept. 9 Petty Cash . ........................................................... 350 Cash . ............................................................... 350 To establish a $350 petty cash fund. 2. Sept. 30 Merchandise Inventory* . ..................................... 40 Postage Expenses . .............................................. 123 Miscellaneous Expenses . ................................... 80 Cash Short and Over . .......................................... 3 Cash . ............................................................... 246 To reimburse the petty cash fund. * Transportation-in costs are included in Merchandise Inventory under a perpetual system. 3. Oct. 1 Petty Cash . ........................................................... 50 Cash . ............................................................... 50 To increase the petty cash fund to $400.
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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 6 – Chapter 6 Problem 6-5A (50 minutes) Part 1 CHAVEZ COMPANY Bank Reconciliation September 30, 2011 Bank statement balance . .............. $18,453.25 Book balance . ............................. $17,404.20 Add Add Interest earned . ..... $ 12.50 Deposit of Sept. 30. ...................... 1,682.75 20,136.00 Proceeds of note less $15 fee . ........ 1,485.00 1,497.50 18,901.70 Deduct Deduct Checks No. 5893 . ...... $494.25 NSF check . ................. 600.25 5906 . ........ 982.30 Error (Check 5904) . . 30.00 5908 . ...... 388.00 1,864.55 630.25 Adjusted bank balance . ................ $18,271.45 Adjusted book balance . ......... $18,271.45 Part 2 Sept. 30 Cash . ............................................................... 12.50 Interest Earned . ........................................ 12.50 To record interest earned. 30 Cash . ............................................................... 1,485 Collection Expense . ....................................... 15 Notes Receivable . .................................... 1,500 To record note collection less fee. 30 Accounts Receivable— S.Nilson . ................. 600.25 Cash . ......................................................... 600.25 To charge account for NSF check plus fee. 30 Computer Equipment . .................................... 30 Cash . ......................................................... 30 To correct an entry error.
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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 6 – Chapter 6 Problem 6-5A (Concluded) Part 3 There are several possible reasons why some prenumbered checks are missing from the sequence of canceled checks returned with a bank statement. Reasons include: (1) Some of the checks in the numbered sequence may have cleared the bank in a previous period and were returned with the bank statement in that previous period. (2) Some
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Week6_ch6_solutions [Uploaded] - FB2100 Accounting I...

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