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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 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 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.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 7, Problem 1MP
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.

Chapter 7, Problem 1MP, Turner Excavation maintains a checking account and has decided to open a petty cash fund. The

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Chapter 7 Solutions

College Accounting, Chapters 1-27
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Ch. 7 - Match the following words with their definitions...Ch. 7 - Indicate how each of the following items should be...Ch. 7 - A petty cash fund established for 200 had the...Ch. 7 - The cash register tape for June 30 showed cash...Ch. 7 - Why must a signature card be filled out and signed...Ch. 7 - Explain the difference between a blank endorsement...Ch. 7 - Who are the three parties to every check?Ch. 7 - What are the three steps to follow in preparing a...Ch. 7 - What are the most common reasons for differences...Ch. 7 - What are the three steps to follow in preparing a...Ch. 7 - What two kinds of items on a bank reconciliation...Ch. 7 - Name five common uses of electronic funds...Ch. 7 - What is the purpose of a petty cash fund?Ch. 7 - What should be prepared every time a petty cash...Ch. 7 - At what two times should the petty cash fund be...Ch. 7 - From what source is the information obtained for...Ch. 7 - At what two times would an entry be made affecting...Ch. 7 - What does a debit balance in the cash short and...Ch. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - PREPARE DEPOSIT TICKET Based on the following...Ch. 7 - PREPARE CHECK AND STUB Based on the following...Ch. 7 - BANK RECONCILIATION PROCEDURES In a format similar...Ch. 7 - PREPARE JOURNAL ENTRIES FOR BANK RECONCILIATION...Ch. 7 - PETTY CASH JOURNAL ENTRIES Based on the following...Ch. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - BANK RECONCILIATION AND RELATED JOURNAL ENTRIES...Ch. 7 - BANK RECONCILIATION AND RELATED JOURNAL ENTRIES...Ch. 7 - PETTY CASH RECORD AND JOURNAL ENTRIES On May 1, a...Ch. 7 - CASH SHORT AND OVER ENTRIES Listed below are the...Ch. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - PREPARE DEPOSIT TICKET Based on the following...Ch. 7 - PREPARE CHECK AND STUB Based on the following...Ch. 7 - BANK RECONCILIATION PROCEDURES In a format similar...Ch. 7 - PREPARE JOURNAL ENTRIES FOR BANK RECONCILIATION...Ch. 7 - PETTY CASH JOURNAL ENTRIES Based on the following...Ch. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - BANK RECONCILI ATION AND RELATED JOURNAL ENTRIES...Ch. 7 - BANK RECONCILIATION AND RELATED JOURNAL ENTRIES...Ch. 7 - PETTY CASH RECORD AND JOURNAL ENTRIES On July 1, a...Ch. 7 - CASH SHORT AND OVER ENTRIES Listed below are the...Ch. 7 - The current months bank statement for your account...Ch. 7 - Turner Excavation maintains a checking account and...Ch. 7 - Susan Panera is preparing the June 30 bank...

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