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PB 1.

LO 8.4On June 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 June 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 June 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 $220.
  3. On June 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 June 29, the company determined that the petty cash fund needed to be increased 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 $18, Supplies $175, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $437.
PB 2.

LO 8.4On July 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 $110.
  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 $14, Supplies $75, Postage Expense $150, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
PB 3.

LO 8.4Hajun Company started its business on May 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 $5,000 from their personal account to the business account.
  2. Paid rent $400 with check #101.
  3. Initiated a petty cash fund $200 check #102.
  4. Received $400 cash for services rendered
  5. Purchased office supplies for $90 with check #103.
  6. Purchased computer equipment $1,000 , paid $350 with check #104 and will pay the remainder in 30 days.
  7. Received $500 cash for services rendered.
  8. Paid wages $250, check #105.
  9. Petty cash reimbursement office supplies $25, Maintenance Expense $125, Miscellaneous Expense $35. Cash on hand $18. Check #106.
  10. Increased Petty Cash by $50, check #107.
PB 4.

LO 8.4Prepare a trial balance using the journal entries in Exercise 8.3.

PB 5.

LO 8.4Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1.

  1. The owners invested $7,500 from their personal account to the business account.
  2. Paid rent $600 with check #101.
  3. Initiated a petty cash fund $250 check #102.
  4. Received $350 cash for services rendered.
  5. Purchased office supplies for $125 with check #103.
  6. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days.
  7. Received $750 cash for services rendered.
  8. Paid wages $375, check #105.
  9. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106.
  10. Increased Petty Cash by $70, check #107.
PB 6.

LO 8.4Prepare a trial balance for Lavender Company using the journal entries in Exercise 8.5.

PB 7.

LO 8.4On June 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 June 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 June 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 $220.
  3. On June 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 June 29, the company determined that the petty cash fund needed to be increased 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 $18, Supplies $175, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $437.
PB 8.

LO 8.4On July 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 $110.
  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 $14, Supplies $75, Postage Expense $150, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
PB 9.

LO 8.4Hajun Company started its business on May 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 $5,000 from their personal account to the business account.
  2. Paid rent $400 with check #101.
  3. Initiated a petty cash fund $200 check #102.
  4. Received $400 cash for services rendered
  5. Purchased office supplies for $90 with check #103.
  6. Purchased computer equipment $1,000 , paid $350 with check #104 and will pay the remainder in 30 days.
  7. Received $500 cash for services rendered.
  8. Paid wages $250, check #105.
  9. Petty cash reimbursement office supplies $25, Maintenance Expense $125, Miscellaneous Expense $35. Cash on hand $18. Check #106.
  10. Increased Petty Cash by $50, check #107.
PB 10.

LO 8.4Prepare a trial balance using the journal entries in Exercise 8.9.

PB 11.

LO 8.4Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1.

  1. The owners invested $7,500 from their personal account to the business account.
  2. Paid rent $600 with check #101.
  3. Initiated a petty cash fund $250 check #102.
  4. Received $350 cash for services rendered.
  5. Purchased office supplies for $125 with check #103.
  6. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days.
  7. Received $750 cash for services rendered.
  8. Paid wages $375, check #105.
  9. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106.
  10. Increased Petty Cash by $70, check #107.
PB 12.

LO 8.4Prepare a trial balance for Lavender Company using the journal entries in Exercise 8.11.

TP PB 1.
13.

LO 8.2LO 8.5Visit a favorite eatery. Describe some of the internal controls that are implemented in the workplace. Discuss the good and effective internal controls and also discuss areas that need to be addressed where the eatery is vulnerable to losses.

PB 14.

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
Overcharge by Bank (Error)        
Interest Income        
Automatic Loan Payment        
Wire Transfer by Customer        
Deposit in Transit        
Outstanding Check        
Table 8.3
PB 15.

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

 
Transaction No Journal Entry Journal Entry Needed Debit Credit
Overcharge by Bank (Error)        
Interest Income        
Automatic Loan Payment        
Wire Transfer by Customer        
Deposit in Transit        
Outstanding Check        
Table 8.4
PB 16.

LO 8.6Hajun Company received the following bank statement. Using the information from Exercise 8.9 and Exercise 8.10, prepare the bank reconciliation.

Bank Statement: Beginning Balance $0; Deposits: A. $5,000, D. $400, Total $5,400; Checks numbered 101 $400, 102 $200, 103 $90, 106 $182; Bank service charges $75, Total reductions $947; Ending Balance $4,453.
PB 17.

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

PB 18.

LO 8.6Lavender Company received the following bank statement. Using the information from Exercise 8.11 and Exercise 8.12, prepare the bank reconciliation.

Bank Statement: Beginning Balance $0; Deposits: A. $7,500, D. $350, Total $7,850; Checks numbered 101 $600, 102 $250, 103 $125, 106 $242; Bank service charges $90, Total reductions $1,307; Ending Balance $6,543.
PB 19.

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

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