Reference no: EM133204529
Assignment - Online Bank Reconciliation and Petty Cash Accounting Template
Question 1 - On December 31, Surat's Warehouse received a bank statement containing a balance of $19,500. The balance in the firm's checkbook and Cash account on the same date was $20,580. The difference between the two balances is caused by the items listed below.
a. A $5,750 deposit made on December 30 does not appear on the bank statement.
b. Check 1312 for $970 issued on November 29 and Check 1375 for $3,300 issued on December 30 have not yet been paid by the bank.
c. A credit memorandum shows that the bank has collected a $2,200 note receivable and interest of $220 for the firm.
d. A service charge of $50 appears on the bank statement.
e. A debit memorandum shows an NSF check for $1,050. (The check was issued by R. Donnelley, a credit customer.)
f. The firm's records indicate that Check 1316 of December 1 was issued for $1,800 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 $1,600.
g. The bank made an error by deducting a check for $1,120 issued by another business from the balance of the account of Designer's Warehouse.
Required -
1. Prepare a bank reconciliation statement for the firm as of December 31, 2016.
2. Record entries for any items on the bank reconciliation statement that must be journalized. Date the entries December 31, 2016.
Question 2 - Petty Cash - El Greco Art Gallery had the following petty cash transactions in February of the current year.
April 3 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier.
April 7 Purchased bond paper for the copier for $15.75 that is immediately used.
April 11 Paid $40.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory.
April 13 Paid $7.15 postage to express mail a contract to a client.
April 15 Reimbursed Adina Sharon, the manager, $73 for business mileage on her car.
April 21 Purchased stationery for $68.77 that is immediately used.
April 24 Paid a courier $21 to deliver merchandise sold to a customer, terms FOB destination.
April 27 Paid $11.60 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
April 29 Paid $56 for postage expenses.
April 29 The fund had $23.87 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
April 30 The petty cash fund amount is increased by $90 to a total of $440.
Required -
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for April with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenditures in each category.
3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount.