Reference no: EM13579041

a) While examining cash receipts information, the accounting department determined the following information: opening cash balance $208, cash on hand $1,562.53, and cash sales per register tape $1,372.20.

Prepare the required journal entry based upon the cash count sheet.

b) The following information pertains to Ghose Company.

1. Cash balance per bank, July 31, $8,094.
2. July bank service charge not recorded by the depositor $50.
3. Cash balance per books, July 31, $8,130.
4. Deposits in transit, July 31, $3,466.
5. Note for $2,766 collected for Ghose in July by the bank, plus interest $48 less fee $32. The collection has not been recorded by Ghose, and no interest has been accrued.
6. Outstanding checks, July 31, $698.

c) Merrick Company expects to have a cash balance of $60,690 on January 1, 2012. These are the relevant monthly budget data for the first two months of 2012.

1. Collections from customers: January $85,690, February $160,690
2. Payments to suppliers: January $54,690, February $89,690
3. Wages: January $31,997, February $41,997. Wages are paid in the month they are incurred.
4. Administrative expenses: January $22,997, February $25,997. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5. Selling expenses: January $16,997, February $21,997. These costs are exclusive of depreciation. They are paid as incurred.

6. Sales of short-term investments in January are expected to realize $13,997 in cash. Merrick has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $34,690.
Prepare a cash budget for January and February.