Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July: July 2 Established a petty cash fund by issuing Check No. 301 for $100. 5 Paid $25 from the petty cash fund for postage. Voucher No. 1. 7 Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2. 8 Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3. 12 Paid $22 from the petty cash fund for a newspaper advertisement. Voucher No. 4. 13 Issued Check No. 303 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.) 20 Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5. 24 Paid $12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6. 28 Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7. 31 Issued Check No. 308 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.) The following additional transactions occurred during July: July 5 Issued Check No. 302 to pay office rent, $650. 15 Issued Check No. 304 for office equipment, $525. 17 Issued Check No. 305 for the purchase of supplies, $133. 18 Issued Check No. 306 to pay attorney fees, $1,000. 30 Issued Check No. 307 to pay newspaper for an advertisement, $200.20. Required: 1. Record the petty cash transactions in a petty cash payments record. 2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.) 3. The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 29 for $2,350. The book balance on July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent expense, but was incorrectly entered on the check stub and in the journal as $650. Prepare a bank reconciliation and make any necessary journal entries as of July 31. STATEMENT Merchant’s National Bank TURNER EXCAVATION Account Number 1632475 Page Number 220 MAIN STREET Statement Date July 31, 20-- OAKHURST, NJ 07755-1461 Statement Instructions Beginning Balance No. of Deposits and Credits We have added these deposits and credits totalling No of withdrawals and charges We have subtracted these withdrawals and charges totaling Resulting in a statement balance of $1,250.25 1 $3,500.00 6 $1,512.50 $3,237.75 Document Count Average Daily Balance this Statement Period Minimum Balance this Statement Period Date Amount If your Account does not Balance, Please see Reverse Side and Report any discrepancies to our Customer Service Department. 7/1 Beginning Balance 1,250.25 7/5 Check No. 301 -100.00 1,150.25 7/8 Check No. 302 -655.00 495.25 7/9 Deposit 3,500.00 3,995.25 7/15 Check No. 303 -97.00 3,898.25 7/20 Check No. 304 -525.00 3,373.25 7/28 Check No. 305 -133.00 3,240.25 7/31 Service Charge -2.50 3,237.75 EC-Error Correction OD-Overdrawn RC-Return Check Charge ATM-Automated Teller Machine TR-Wire Transfer D/N-Day/Night Depositor Agrees and Bank Accepts Business Upon the Terms and Conditions of Bank’s Rules and Regulations Now in Effect or as May be Hereafter Adopted. 2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.) 3. Record any necessary journal entries from the bank reconciliation as of July 31. PAGE 2 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 3. Prepare a bank reconciliation on July 31

Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July: July 2 Established a petty cash fund by issuing Check No. 301 for $100. 5 Paid $25 from the petty cash fund for postage. Voucher No. 1. 7 Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2. 8 Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3. 12 Paid $22 from the petty cash fund for a newspaper advertisement. Voucher No. 4. 13 Issued Check No. 303 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.) 20 Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5. 24 Paid $12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6. 28 Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7. 31 Issued Check No. 308 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.) The following additional transactions occurred during July: July 5 Issued Check No. 302 to pay office rent, $650. 15 Issued Check No. 304 for office equipment, $525. 17 Issued Check No. 305 for the purchase of supplies, $133. 18 Issued Check No. 306 to pay attorney fees, $1,000. 30 Issued Check No. 307 to pay newspaper for an advertisement, $200.20. Required: 1. Record the petty cash transactions in a petty cash payments record. 2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.) 3. The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 29 for $2,350. The book balance on July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent expense, but was incorrectly entered on the check stub and in the journal as $650. Prepare a bank reconciliation and make any necessary journal entries as of July 31. STATEMENT Merchant’s National Bank TURNER EXCAVATION Account Number 1632475 Page Number 220 MAIN STREET Statement Date July 31, 20-- OAKHURST, NJ 07755-1461 Statement Instructions Beginning Balance No. of Deposits and Credits We have added these deposits and credits totalling No of withdrawals and charges We have subtracted these withdrawals and charges totaling Resulting in a statement balance of $1,250.25 1 $3,500.00 6 $1,512.50 $3,237.75 Document Count Average Daily Balance this Statement Period Minimum Balance this Statement Period Date Amount If your Account does not Balance, Please see Reverse Side and Report any discrepancies to our Customer Service Department. 7/1 Beginning Balance 1,250.25 7/5 Check No. 301 -100.00 1,150.25 7/8 Check No. 302 -655.00 495.25 7/9 Deposit 3,500.00 3,995.25 7/15 Check No. 303 -97.00 3,898.25 7/20 Check No. 304 -525.00 3,373.25 7/28 Check No. 305 -133.00 3,240.25 7/31 Service Charge -2.50 3,237.75 EC-Error Correction OD-Overdrawn RC-Return Check Charge ATM-Automated Teller Machine TR-Wire Transfer D/N-Day/Night Depositor Agrees and Bank Accepts Business Upon the Terms and Conditions of Bank’s Rules and Regulations Now in Effect or as May be Hereafter Adopted. 2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.) 3. Record any necessary journal entries from the bank reconciliation as of July 31. PAGE 2 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 3. Prepare a bank reconciliation on July 31

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 1MP

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Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July:

July 2	Established a petty cash fund by issuing Check No. 301 for $100.
5	Paid $25 from the petty cash fund for postage. Voucher No. 1.
7	Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2.
8	Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3.
12	Paid $22 from the petty cash fund for a newspaper advertisement. Voucher No. 4.
13	Issued Check No. 303 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.)
20	Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5.
24	Paid $12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6.
28	Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7.
31	Issued Check No. 308 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.)

The following additional transactions occurred during July:

July 5	Issued Check No. 302 to pay office rent, $650.
15	Issued Check No. 304 for office equipment, $525.
17	Issued Check No. 305 for the purchase of supplies, $133.
18	Issued Check No. 306 to pay attorney fees, $1,000.
30	Issued Check No. 307 to pay newspaper for an advertisement, $200.20.

Required:

Record the petty cash transactions in a petty cash payments record.

Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.)

The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 29 for $2,350. The book balance on July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent expense, but was incorrectly entered on the check stub and in the journal as $650. Prepare a bank reconciliation and make any necessary journal entries as of July 31.

STATEMENT

Merchant’s National Bank

TURNER EXCAVATION

Account Number

1632475

Page Number

220 MAIN STREET

Statement Date

July 31, 20--

OAKHURST, NJ 07755-1461

Statement Instructions

Beginning Balance

No. of Deposits and Credits

We have added these deposits and credits totalling

No of withdrawals and charges

We have subtracted these withdrawals and charges totaling

Resulting in a statement balance of

$1,250.25

$3,500.00

$1,512.50

$3,237.75

Document Count

Average Daily Balance this Statement Period

Minimum Balance this Statement Period

Date

Amount

If your Account does not Balance, Please see Reverse Side and Report any discrepancies to our Customer Service Department.

7/1

Beginning Balance

1,250.25

7/5

Check No. 301

-100.00

1,150.25

7/8

Check No. 302

-655.00

495.25

7/9

Deposit

3,500.00

3,995.25

7/15

Check No. 303

-97.00

3,898.25

7/20

Check No. 304

-525.00

3,373.25

7/28

Check No. 305

-133.00

3,240.25

7/31

Service Charge

-2.50

3,237.75

EC-Error Correction

OD-Overdrawn

RC-Return Check Charge

ATM-Automated Teller Machine

TR-Wire Transfer

D/N-Day/Night

Depositor Agrees and Bank Accepts Business Upon the Terms and Conditions of Bank’s Rules and Regulations Now in Effect or as May be Hereafter Adopted.

2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.)

3. Record any necessary journal entries from the bank reconciliation as of July 31.

PAGE 2

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4

3. Prepare a bank reconciliation on July 31

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