Forney Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.
|July 1||Established petty cash fund by writing a check on Scranton Bank for $200.|
|15||Replenished the petty cash fund by writing a check for $196.00. On this date the fund consisted of $4.00 in cash and the following petty cash receipts; freight-out $92.00, postage expense $42.40, entertainment expense $46.60, and miscellaneous expense $11.20.|
|31||Replenished the petty cash fund by writing a check for $192.00. At this date the fund consisted of $8.00 in cash and the following petty cash receipts: freight-out $82.10, charitable contributions expense $45.00, postage expense $25.50, and miscellaneous expense $39.40..|
|Aug. 15||Replenished the petty cash fund by writing a check for $187.00. On this date, the fund consisted of $13,00 in cash and the following petty cash receipts: freight-out $77.60, entertainment expense $43,00, postage expense $33,00, and miscellaneous expense $37.00.|
|16||Increased the amount of the petty cash fund to $300 by writing a check for $100.|
|31||Replenished the petty cash fund by writing a check for $284.00. On this date, the fund consisted of $16 in cash and the following petty cash receipts: postage expense $140.00, travel expense $95.60, and freight-out $47.10.|
- Journalize the petty cash transactions.
- Post to the Petty Cash account.
- What internal control features exist in a petty cash fund?
On May 31, 2019, Rober Company had a cash balance per books of $6,781.50. tha bank statement from New York State Bank on that date showed a balance of $6,404.60. A comparison of the statement with the Cash account revealed the following facts.
- The statement included a debit memo of $40 for the printing of additional company checks.
- Cash sales of $836.15 on May 12 were deposited in the bank. the cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Reber Company for the correct amount.
- Outstanding checks at May 31 totaled $576.25. Deposits in transit were $2,416,15.
- On may 18, the company issued check No. 1181 for $685 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber company for $658.
- A $3,000 note receivable was collected by the bank for Reber Comapny on May 31 plus $80 interest. The bank charged a collection fee of $20. no interest has been accrued on the note.
- Included with the cancelled checks was a check issued by Stiner Comapny to Ted Cress for $800 that was incorrectly charged to Reber Company by the bank.
- On May 31, the bank statement showed an NSF charge of $680 for a check issued byt Sue Allison, a customer, to Reber Comapny on account.
- Prepare the bank reconciliation at May 31, 2019.
- Pprepare the necessary adjusting entries for Reber Company at May 31, 2019.
The following information pertains to Crane Video Company
- Cash balance per bank, July 31, $7,263.
- July bank service chrge not recorded by the depositor $28.
- Cash balance per books, July 31, 7,284.
- Deposits in transit, July 31, $1,300.
- Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The collection has note been recorded by Crane, and no interest has been accrued.
- Outstanding checks, July 31, $591.
- Prepare a bank reconciliation at July 31.
- Journalize the adjusting entries at July 31 on the books of Crane Video Company.
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