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 2Established a petty cash fund by issuing Check No. 301 for $100.5Paid $25 from the petty cash fund for postage. Voucher No. 1.7Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2.8Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3.12Paid $22 from the petty cash fund for a newspaper advertisement. Voucher No. 4.13Issued 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.)20Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5.24Paid $12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6.28Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7.31Issued 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 5Issued Check No. 302 to pay office rent, $650.15Issued Check No. 304 for office equipment, $525.17Issued Check No. 305 for the purchase of supplies, $133.18Issued Check No. 306 to pay attorney fees, $1,000.30Issued 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. STATEMENTMerchant’s National BankTURNER EXCAVATIONAccount Number1632475Page Number220 MAIN STREETStatement DateJuly 31, 20-- OAKHURST, NJ 07755-1461Statement Instructions Beginning BalanceNo. of Deposits and CreditsWe have added these deposits and credits totallingNo of withdrawals and chargesWe have subtracted these withdrawals and charges totalingResulting in a statement balance of$1,250.25 1$3,500.006$1,512.50$3,237.75Document CountAverage Daily Balance this Statement PeriodMinimum Balance this Statement PeriodDateAmount If your Account does not Balance, Please see Reverse Side and Report any discrepancies to our Customer Service Department. 7/1Beginning Balance 1,250.257/5Check No. 301-100.001,150.257/8Check No. 302-655.00495.257/9Deposit3,500.003,995.257/15Check No. 303-97.003,898.257/20Check No. 304-525.003,373.257/28Check No. 305-133.003,240.257/31Service Charge-2.503,237.75 EC-Error CorrectionOD-OverdrawnRC-Return Check ChargeATM-Automated Teller MachineTR-Wire TransferD/N-Day/NightDepositor 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.

Question

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 2Established a petty cash fund by issuing Check No. 301 for $100.5Paid $25 from the petty cash fund for postage. Voucher No. 1.7Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2.8Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3.12Paid $22 from the petty cash fund for a newspaper advertisement. Voucher No. 4.13Issued 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.)20Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5.24Paid $12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6.28Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7.31Issued 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 5Issued Check No. 302 to pay office rent, $650.15Issued Check No. 304 for office equipment, $525.17Issued Check No. 305 for the purchase of supplies, $133.18Issued Check No. 306 to pay attorney fees, $1,000.30Issued 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. STATEMENTMerchant’s National BankTURNER EXCAVATIONAccount Number1632475Page Number220 MAIN STREETStatement DateJuly 31, 20-- OAKHURST, NJ 07755-1461Statement Instructions  Beginning BalanceNo. of Deposits and CreditsWe have added these deposits and credits totallingNo of withdrawals and chargesWe have subtracted these withdrawals and charges totalingResulting in a statement balance of$1,250.25 1$3,500.006$1,512.50$3,237.75Document CountAverage Daily Balance this Statement PeriodMinimum Balance this Statement PeriodDateAmount If your Account does not Balance, Please see Reverse Side and Report any discrepancies to our Customer Service Department.      7/1Beginning Balance 1,250.257/5Check No. 301-100.001,150.257/8Check No. 302-655.00495.257/9Deposit3,500.003,995.257/15Check No. 303-97.003,898.257/20Check No. 304-525.003,373.257/28Check No. 305-133.003,240.257/31Service Charge-2.503,237.75            EC-Error CorrectionOD-OverdrawnRC-Return Check ChargeATM-Automated Teller MachineTR-Wire TransferD/N-Day/NightDepositor 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.

Accepted Answer

answers

1. Petty Cash Payments Record

Date

Voucher No

Amount Deposit

Amount Withdrawn…

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.)

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.

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.

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