Exercise Set A

LO 8.5Record the following transactions:

1. Started a petty cash fund in the amount of $300.
2. Replenished petty cash fund using the following expenses: Auto $18, Office Expenses $35, Postage Expense $56, Miscellaneous Expenses $67. Cash on hand is $124.
3. Increased petty cash by $50.

LO 8.5Record the following transactions:

1. Started a petty cash fund in the amount of $200.
2. Replenished petty cash fund using the following expenses: Auto $15, Office Expenses $20, Postage Expense $81, Miscellaneous Expenses $66. Cash on hand is $10.
3. Increased petty cash by $75.

LO 8.5Record the following transactions:

1. Started a petty cash fund in the amount of $300.
2. Replenished petty cash fund using the following expenses: Auto $69, Office Expenses $77, Postage Expense $56, Miscellaneous Expenses $98. Cash on hand is $6.
3. Increased petty cash by $60.

LO 8.5Record the following transactions:

1. Started a petty cash fund in the amount of $500.
2. Replenished petty cash fund using the following expenses: Auto $24, Office Expenses $43, Postage Expense $19, Miscellaneous Expenses $25. Cash on hand is $389.
3. The company has decided to reduce the petty cash fund to $300.

LO 8.6The bank reconciliation shows the following adjustments:

• Deposits in transit: $1,234
• Outstanding checks: $558
• Bank service charges: $50
• NSF checks: $250

Prepare the correcting journal entry.

LO 8.6The bank reconciliation shows the following adjustments:

• Deposits in transit: $852
• Notes receivable collected by bank: $1,000; interest: $20
• Outstanding checks: $569
• Error by bank: $300
• Bank charges: $30

Prepare the correcting journal entry.

LO 8.6Using the following information, prepare a bank reconciliation.

• Bank balance: $3,678
• Book balance: $2,547
• Deposits in transit: $321
• Outstanding checks: $108 and $334
• Bank charges: $25
• Notes receivable: $1,000; interest: $35

LO 8.6Prepare the journal entry to reconcile the bank statement in Exercise 8.7.

LO 8.6Using the following information, prepare a bank reconciliation.

• Bank balance: $4,587
• Book balance: $5,577
• Deposits in transit: $1,546
• Outstanding checks: $956
• Interest income: $56
• NSF check: $456

LO 8.6Prepare the journal entry to reconcile the bank statement in Exercise 8.9.

LO 8.6Using the following information, prepare a bank reconciliation.

• Bank balance: $6,988
• Book balance: $6,626
• Deposits in transit: $1,600
• Outstanding checks: $599 and $1,423
• Bank charges: $75
• Bank incorrectly charged the account $75. The bank will correct the error next month.
• Check number 2456 correctly cleared the bank in the amount of $234 but posted in the accounting records as $324. This check was expensed to Utilities Expense.

LO 8.6Prepare the journal entry to reconcile the bank statement in Exercise 8.11.