Chap006wildtextbook

6 a 486 deposit by acme company was erroneously

Info icon This preview shows pages 18–24. Sign up to view the full content.

View Full Document Right Arrow Icon
6. A $486 deposit by Acme Company was erroneously credited to our account by the bank. 6-18
Image of page 18

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Bank Reconciliation Example 6-19 Bank Balance, July 31 9,610 $ Add: Deposit in Transit 500 Less: Bank Error 486 $ Outstanding Checks 2,417 (2,903) Adjusted Balance, July 31 7,207 $ Book Balance, July 31 7,430 $ Add: Interest 30 Less: Recording Error 28 $ NSF Check 225 (253) Adjusted Balance, July 31 7,207 $ Simmons Company Bank Reconciliation July 31, 2011
Image of page 19
Adjusting Entries from a Bank Reconciliation Only amounts shown on the book portion of the reconciliation require an adjusting entry. 6-20 Dr. Cr. July 31 Cash 30 Interest revenue 30 July 31 Supplies expense 28 Accounts receivable 225 Cash 253
Image of page 20

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Adjusting Entries from a Bank Reconciliation After posting the reconciling entries the cash account looks like this: Adjusted balance on July 31. 6-21 GENERAL LEDGER Account: Cash Acct. No. 101 Balance Date Item PR Debit Credit DR (CR) July 31 Balance 7,430 31 Adjusting entry 30 7,460 31 Adjusting entry 253 7,207
Image of page 21
Petty Cash System of Control Small payments required in most companies for items such as postage, courier fees, repairs and supplies. 6-22
Image of page 22

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
39¢ Stamps $45 Courier $80 Operating a Petty Cash Fund Petty Cashier A petty cash fund is used only for business expenses. 6-23
Image of page 23
Operating a Petty Cash Fund Receipts Petty cash receipts with either no signature or a forged signature usually indicate misuse of petty cash. Petty Cashier 39¢ Stamps $45 Courier $80 6-24
Image of page 24
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern