2, Interest earned on the cash balance in the bank is recorded by the bank as:...

2, Interest earned on the cash balance in the bank is recorded by the bank as:

Multiple Choice

An increase in the bank’s asset account.
A decrease in the bank’s asset account.
A decrease in the depositor’s bank account.
An increase in the depositor’s bank account.
An increase in the bank’s expense account.

3, Which of the following events would cause a bank to reduce a depositor's account?

Multiple Choice

The depositor orders new checks through the bank at a cost of $50.
The bank collects a note receivable and related interest on the depositor's behalf.
There are outstanding checks drawn on the account at month-end.
There are deposits in transit on the account at month-end.
The bank corrects an error from previous month by adding $75 to the depositor account.

4,

Wilson Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May.

May	1	Prepared a company check for $400 to establish the petty cash fund.
May	15	Prepared a company check to replenish the fund for the following expenditures made since May 1.
		a. Paid $133 for janitorial services.
		b. Paid $100 for miscellaneous expenses.
		c. Paid postage expenses of $66.
		d. Paid $33 to Facebook for advertising expense.
		e. Counted $76 remaining in the petty cash box.
May	16	Prepared a company check for $200 to increase the fund to $600.
May	31	The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
		f. Paid postage expenses of $210.
		g. Reimbursed the office manager for business mileage, $105.
		h. Paid $35 to deliver merchandise to a customer, terms FOB destination.
May	31	The company decides that the May 16 increase in the fund was too large. It reduces the fund by $160, leaving a total of $440.

Requirement
General Journal
General Ledger
Trial Balance
Impact on Income

Indicate the impact each transaction had on net income. Decreases to net income should be indicated with a minus sign.

Dates:

May 01

to:

May 31

Transaction	Impact transaction has on income:	Amount of increase (decrease)
May 1) Prepared a company check for $400 to establish the petty cash fund.	Net income was unchanged
May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $133 for janitorial services, $100 for miscellaneous expenses, postage expenses of $66, $33 to Facebook for advertising expense. Counted $76 remaining in the petty cash box.
May 16 Prepared a company check for $200 to increase the fund to $600.	Net income was unchanged
May 31 The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15: postage expenses of $210, business mileage, $105, $35 to deliver merchandise to a customer, terms FOB destination.
May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $160, leaving a total of $440.	Net income was unchanged
In total, net income increased (decreased) by:		$0

Expert Solution

ekkarill92 answered 1 year ago

Faubert failed to accrue $10,000 of Interest Revenue for interest earned in Year 2. Revenue was recorded when the cash collection was received in Year 3.

Which one of the following is a cash outflow in cash budgeting? Interest earned Interest paid...

Which one of the following is a cash outflow in cash budgeting? Interest earned Interest paid Proceeds from fixed asset sales Proceeds from stock sales

Balance per the bank on May 31: $12,685. Deposits in transit not recorded by the bank:...

Balance per the bank on May 31: $12,685. Deposits in transit not recorded by the bank: $1,780. Bank error; check written by Best Beauty Supply was charged to Pro Beauty Supply’s account: $800. The following checks written and recorded by Pro Beauty Supply were not included in the bank statement: 3013 $ 145 3054 630 3056 1,390 Note collected by the bank: $900. Service charge for collection of note: $13. The bookkeeper recorded a check written for $622 to pay...

The following are selected transactions that may affect stockholders’ equity. 1. Recorded accrued interest earned...

The following are selected transactions that may affect stockholders’ equity. 1. Recorded accrued interest earned on a note receivable. 2. Declared a cash dividend. 3. Declared and distributed a stock split. 4. Approved a retained earnings restriction. 5. Recorded the expiration of insurance coverage that was previously recorded as prepaid insurance. 6. Paid the cash dividend declared in item 2 above. 7. Recorded accrued interest expense on a note payable. 8. Declared...

In a bank reconciliation, interest revenue earned on a chequing account would be deducted from the...

In a bank reconciliation, interest revenue earned on a chequing account would be deducted from the book balance. true or false

Quincy put $100 in the bank and earned 25 cent in interest. What is the $100...

Quincy put $100 in the bank and earned 25 cent in interest. What is the $100 considered? Group of answer choices Reinvesting Current Ratio Principal Present Value The process by which Maggie manages her liquid assets is known as? Group of answer choices Quarterly Management Annual Management Management Cash Management Tom deposits his payroll check into a financial institutions that provide traditional checking and savings accounts. This type of institution is known as? Group of answer choices Credit Union Non...

In January 2018, Sonja Deposited $20,000 in a bank in the Bahamas. She earned $500 Interest...

In January 2018, Sonja Deposited $20,000 in a bank in the Bahamas. She earned $500 Interest income. She closed the Account in December 2018. a. Is Sonja subject to the FBAR reporting requirement? b. Is the Interest Income taxable in the United States?

Acquired $30,000 cash from the issue of common stock. Borrowed $42,000 cash from National Bank. Earned...

Acquired $30,000 cash from the issue of common stock. Borrowed $42,000 cash from National Bank. Earned cash revenues of $58,000 for performing services. Paid cash expenses of $50,000. Paid a $2,000 cash dividend to the stockholders. Acquired an additional $30,000 cash from the issue of common stock. Paid $11,000 cash to reduce the principal balance of the bank note. Paid $51,000 cash to purchase land. Determined that the market value of the land is $71,000. Determine the amount of total...

1. Client’s cash balance per book and cash balance per bank are often different and this...

1. Client’s cash balance per book and cash balance per bank are often different and this difference is mostly driven by timing difference and/or errors. Please list at least 3 reconciliation items which may create timing difference. 2. Please identify and describe important internal controls over the credit sale (NOT cash sale) process. 3. Please identify and describe important internal controls over the credit sale (NOT cash sale) process. 4. How does the presence of perpetual records affect the audit?...

Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on...

Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Balance Sheet (in thousands) Assets Rate Earned (%) Cash and due from banks $ 6,100 0 Investment securities 23,000 9 Repurchase agreements 13,000 7 Loans less allowance for losses 81,000 11 Fixed assets 11,000 0 Other earning assets 3,900 10 Total assets $ 138,000 Liabilities and Equity Rate Paid (%) Demand deposits $ 10,000 0 NOW accounts 70,000 6 Retail CDs 19,000...

Question