Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo

PA 1.

LO 8.5On September 1, French company has decided to initiate a petty cash fund in the amount of $800. Prepare journal entries for the following transactions:

  1. On September 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $37, Supplies $124, Postage Expense $270, Repairs and Maintenance Expense $168, Miscellaneous Expense $149. The cash on hand at this time was $48.
  2. On September 14, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $18, Supplies $175, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $210.
  3. On September 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $88, Postage Expense $63, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $20.
  4. On September 29, the company determined that the petty cash fund needed to be increased to $1,000.
  5. On September 30, the petty cash fund needed replenishment as it was month end. The following are the receipts: Auto Expense $18, Supplies $15, Postage Expense $57, Repairs and Maintenance Expense $49, Miscellaneous Expense $29. The cash on hand at this time was $837.
PA 2.

LO 8.5On May 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions:

  1. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38.
  2. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $80.
  3. On June 23, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93.
  4. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000.
  5. On June 30, the petty cash fund needed replenishment as it was month-end. The following are the receipts: Auto Expense $114, Supplies $75, Postage Expense $50, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
PA 3.

LO 8.5Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1.

  1. The owners invested $10,000 from their personal account to the business account.
  2. Paid rent $500 with check #101.
  3. Initiated a petty cash fund $500 with check #102.
  4. Received $1,000 cash for services rendered.
  5. Purchased office supplies for $158 with check #103.
  6. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days.
  7. Received $800 cash for services rendered.
  8. Paid wages $600, check #105.
  9. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106.
  10. Increased petty cash by $30, check #107.
PA 4.

LO 8.5Prepare a trial balance using the journal entries in Exercise 8.3.

PA 5.

LO 8.5Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1.

  1. The owners invested $8,500 from their personal account to the business account.
  2. Paid rent $650 with check #101.
  3. Initiated a petty cash fund $550 check #102.
  4. Received $750 cash for services rendered.
  5. Purchased office supplies for $180 with check #103.
  6. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days.
  7. Received $1,200 cash for services rendered.
  8. Paid wages $560, check #105.
  9. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106.
  10. Increased Petty Cash by $100, check #107.
PA 6.

LO 8.5Prepare a trial balance using the journal entries in Exercise 8.5.

PA 7.

LO 8.6Identify where each of the following transactions would be found on the bank reconciliation.

 
Transaction Increase to Bank Side Decrease to Bank Side Increase to Book Side Decrease to Book Side
Outstanding check        
Interest income        
NFS check        
Wire transfer by customer        
Deposit in transit        
Bank charges        
Table 8.1
PA 8.

LO 8.6Which of the following transactions will require a journal entry? Indicate if it will be a debit or a credit and to what account the entry will be recorded.

 
Transaction No Journal Entry Needed Journal Entry Needed Debit Credit
Outstanding check        
Interest income        
NFS check        
Wire transfer by customer        
Deposit in transit        
Bank charges        
Table 8.2
PA 9.

LO 8.6Domingo Company received the following bank statement. Using Exercise 8.3, prepare the bank reconciliation.

Bank Statement: Beginning Balance $0; Deposits: A. $10,000, D. $1,000, Total $11,000; Checks numbered 101 $500, 102 $500, 103 $158, 106 $489 Bank service charges $100, Total reductions $1,747; Ending Balance $9,253.
PA 10.

LO 8.6Prepare the journal entry required to reconcile the book balance to the bank balance.

PA 11.

LO 8.6Inner Resources Company received the following bank statement. Using the information from Exercise 8.5 and Exercise 8.6, prepare the bank reconciliation.

Bank Statement: Beginning Balance $0; Deposits: A. 8,500, D. $1,200 Total $9,700; Checks numbered 101 $650, 102 $550, 103 $180, 106 $457; Bank service charges $100, Total reductions $1,937; Ending Balance $7,763.
PA 12.

LO 8.6Prepare the journal entry required to reconcile the book balance to the bank balance.

Citation/Attribution

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution-NonCommercial-ShareAlike License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
Citation information

© Jul 16, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.