ACCT 211 Homework 6 Cash, Fraud, and Internal Control Exercises Assignment solutions complete answers
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Waupaca Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $128 in cash along with receipts for the following expenditures: transportation-in, $57; postage expenses, $78; and miscellaneous expenses, $132. The petty cashier could not account for a $5 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $465.
Palmona Company establishes a $130 petty cash fund on January 1. On January 8, the fund shows $45 in cash along with receipts for the following expenditures: postage, $37; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $26. Palmona uses the perpetual system in accounting for merchandise inventory.
1. Prepare the entry to establish the fund on January 1.
2. Prepare the entry to reimburse the fund on January 8 under two separate situations:
a. To reimburse the fund.
b. To reimburse the fund and increase it to $180. Hint: Make two entries.
Del Gato Clinic's cash account shows an $13,388 debit balance and its bank statement shows $12,028 on deposit at the close of business on June 30.
a. Outstanding checks as of June 30 total $1,226.
b. The June 30 bank statement lists a $55 bank service charge.
c. Check No. 919, listed with the canceled checks, was correctly drawn for $689 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $698.
d. The June 30 cash receipts of $2,540 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
Prepare its bank reconciliation using the above information.
Wright Company's cash account shows a $30,500 debit balance and its bank statement shows $28,800 on deposit at the close of business on May 31.
a. The May 31 bank statement lists $250 in bank service charges; the company has not yet recorded the cost of these services.
b. Outstanding checks as of May 31 total $7,100.
c. May 31 cash receipts of $7,700 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement.
d. In reviewing the bank statement, a $550 check written by Smith Company was mistakenly drawn against Wright’s account.
e. The bank statement shows a $300 NSF check from a customer; the company has not yet recorded this NSF check.
Prepare its bank reconciliation using the above information.
