In: Accounting
1.
Items on Company's Bank Statement
The following items may appear on a bank statement:
1. Bank correction of an error from posting another customer's check (disbursement) to the company's account
2. EFT deposit
3. Loan proceeds
4. NSF check
Indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company's account:
Item |
Appears on the Bank Statement as a Debit or Credit Memo |
Increases or Decreases the Balance of the Company's Bank Account |
1. Bank correction of an error from posting another customer's check (disbursement) to the company's account | ||
2. EFT deposit | ||
3. Loan proceeds | ||
4. NSF check |
2.
Bank Reconciliation
The following data were gathered to use in reconciling the bank account of Azalea Company:
Balance per bank | $ 33,840 |
Balance per company records | 28,225 |
Bank service charges | 155 |
Deposit in transit | 4,980 |
NSF check | 1,840 |
Outstanding checks | 12,590 |
a. What is the adjusted balance on the bank
reconciliation?
$
b. Journalize any necessary entries for Azalea Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.
Options:
3.
Petty Cash Fund
Prepare journal entries for each of the following. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Issued a check to establish a petty cash fund of $700.
b. The amount of cash in the petty cash fund is $220. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $282 and miscellaneous selling expense, $178. Record any missing funds in the cash short and over account. For a compound transaction, if an amount box does not require an entry, leave it blank.
Options: