BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

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. 1. Record the petty cash transactions in a petty cash payments record.
  2. 2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.)
  3. 3. The bank statement on page 265 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.

images

1.

To determine

Prepare petty cash payment record to record the petty cash transactions.

Explanation

Petty cash fund:

Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches.

Prepare petty cash payment record to record the petty cash transactions...

2.

To determine

Prepare journal entry to record the given transactions.

3.

To determine

Prepare the bank reconciliation statement for Company T as for July 31.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why do economists make assumptions?

Principles of Microeconomics (MindTap Course List)

Give an advantage and a disadvantage for each method.

Foundations of Business (MindTap Course List)

When is a stock said to be in equilibrium? Why might a stock at any point in time not be in equilibrium?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)