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 2 years 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.

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