Reference no: EM132496856

Problem 1: On January 2, Jasmine's Beauty Supplies Inc. issued Check 3100 for $300 to establish a petty cash fund. On January 31, Check 3159 was issued to replenish the petty cash fund. An analysis of payments from the fund showed these totals: Supplies, $57; Delivery Expense, $98; and Miscellaneous Expense, $33.

1. Indicate how these transactions would be recorded in a general journal.

Problem 2: On January 2, The Public Legal Clinic issued Check 2108 for $430 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journal,

Problem 3: Read the following transactions.

• Lourdes LLC. keeps a $100 change fund in its cash register. At the end of the day, cash sales per the register tape were $3,280. The cash count was $3,700.

Calculate the amount over or short.

Problem 4: Di Stefano Office Supply Company received a bank statement showing a balance of $68,105 as of March 31, 2019. The firm's records showed a book balance of $69,499 on March 31. The difference between the two balances was caused by the following items.

A debit memorandum for $52, which covers the bank's collection fee for the note (item 6).

A deposit in transit of $3,800.

A check for $250 issued by another firm that was mistakenly charged to Di Stefano's account.

A debit memorandum for an NSF check of $6,145 issued by Wozniak Construction Company, a credit customer.

Outstanding checks: Check 3782 for $2,300; Check 3840 for $153.

A credit memorandum for a $6,400 noninterest-bearing note receivable that the bank collected for the firm.

1. Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

Problem 5: On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,850. The balance in the firm's checkbook and Cash account on the same date was $10,500. The difference between the two balances is caused by the items listed below.

1. A $2,975 deposit made on March 30 does not appear on the bank statement.
2. Check 358 for $535 issued on March 29 and Check 359 for $1,750 issued on March 30 have not yet been paid by the bank.
3. A credit memorandum shows that the bank has collected a $1,100 note receivable and interest of $110 for the firm.
4. A service charge of $35 appears on the bank statement.
5. A debit memorandum shows an NSF check for $575. (The check was issued by Dane Jaris, a credit customer.)
6. The firm's records indicate that Check 341 of March 1 was issued for $800 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $750.
7. The bank made an error by deducting a check for $610 issued by another business from the balance of Home Decorating Pavilion's account.

Required:

1. Prepare a bank reconciliation statement for the firm as of March 31, 2019.

2. Record entries for any items on the bank reconciliation statement that must be journalized.