Learning Materials
Features
Discover
Chapter 7: Q16RQ (page 412)
List some examples of timing differences, and for each difference, determine if it would affect the book side of the reconciliation or the bank side of the reconciliation.
Examples of bank reconciliation statements are check deposits, EFT payments, and cash deposits.
Over 30 million students worldwide already upgrade their learning with 91影视!
All the tools & learning materials you need for study success - in one app.
Get started for free
Accounting for petty cash Jackie鈥檚 Dance Studio created a \(220 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: Petty Cash Ticket No. Item Account Debited Amount
1 Delivery of programs to customers Delivery Expense \) 20 2 Mail package Postage Expense 10 3 Newsletter Printing Expense 25 4 Key to closet Miscellaneous Expense 40 5 Copier paper Office Supplies 70
Requirements
1. Make the general journal entry to create the petty cash fund. Include an explanation.
2. Make the general journal entry to record the petty cash fund replenishment. Cash in the fund totals \(40. Include an explanation.
3. Assume that Jackie鈥檚 Dance Studio decides to decrease the petty cash fund to \)120. Make the general journal entry to record this decrease.
Accounting for petty cash transactions
On June 1, Fab Salad Dressings creates a petty cash fund with an imprest balance of
\(300. During June, Al Franklin, the fund custodian, signs the following petty cash tickets:
Petty Cash
Ticket Number Item Amount
101 Office supplies \) 30
102 Cab fare for executive 20
103 Delivery of package across town 50
104 Business dinner 40
105 Merchandise inventory 90
On June 30, before replenishment, the fund contains these tickets plus cash of \(90.
The accounts affected by petty cash payments are Office Supplies, Travel Expense,
Delivery Expense, Entertainment Expense, and Merchandise Inventory.
Requirements
1. Explain the characteristics and the internal control features of an imprest fund.
2. On June 30, how much cash should the petty cash fund hold before it isreplenished?
3. Journalize all required entries to create the fund and replenish it. Includeexplanations.
4. Make the July 1 entry to increase the fund balance to \)375. Include an explanationand briefly describe what the custodian does.
What are some common controls used with a bank account?
What is a bank reconciliation?
Recording credit card and debit card sales
Restaurants do a large volume of business with credit and debit cards. Suppose Summer,
Sand, and Castles Resort restaurant had these transactions on January 28, 2018:
National Express credit card sales $ 10,800
ValueCard debit card sales 10,000
Requirements
1. Suppose Summer, Sand, and Castles Resort鈥檚 processor charges a 2% fee anddeposits sales net of the fee. Journalize these sales transactions for the restaurant.
2. Suppose Summer, Sand, and Castles Resort鈥檚 processor charges a 2% fee anddeposits sales using the gross method. Journalize these sales transactions for therestaurant.
What do you think about this solution?
We value your feedback to improve our textbook solutions.
Explanations 
Textbooks 
Flashcards 
91影视 AI 
Notes 
Study Plans 
Study Sets 
Find a degree 
Magazine