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Chap006wildtextbook

6 a 486 deposit by acme company was erroneously

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6. A $486 deposit by Acme Company was erroneously credited to our account by the bank. 6-18
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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
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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
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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
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Petty Cash System of Control Small payments required in most companies for items such as postage, courier fees, repairs and supplies. 6-22
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39¢ Stamps $45 Courier $80 Operating a Petty Cash Fund Petty Cashier A petty cash fund is used only for business expenses. 6-23
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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
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6 A 486 deposit by Acme Company was erroneously credited to...

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