Page 363 - Accounting Principles (A Business Perspective)

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Exercise K Rock Company has a USD 450 petty cash fund. The following transactions occurred in December:
Dec. 2 The petty cash fund was increased to USD 1,350.
8 Petty Cash Voucher No. 318 for USD 14.20 delivery expense was prepared and paid. The fund was not

replenished at this time.
20 The company decided that the fund was too large and reduced it to USD 1,120.
Prepare any necessary journal entries for these transactions.
Problems

The following 2010 June 30, bank reconciliation pertains to Tiffany Company:
Cash Bank
Amount Statement
Balance , June 30 $29,143.36 $28,644.31
Add: Deposit not credited by bank 942.60
Total $29,586.91
Less: Outstanding checks:
No. 724 $18.45
No. 886 15.00
No. 896 143.55
No. 897 187.65
No. 898 78.90 443.55
Adjusted cash balance, June 30 $29,143.36 $29,143.36
Tiffany's July bank statement follows:
Balance, July 1 $28,644.31
Deposits during July 5,441.94 $34,086.25
Canceled checks returned:
No. 724 $ 18.45
No. 896 143.55
No. 897 187.65
No. 898 78.90
No. 899 18.86
No. 900 1,349.55
No. 902 946.92
No. 904 44.01 $2,787.89
NSF Check of Starr Company 139.98 2,927.87
Bank statement balance, July 31 $31,158.38
The cash receipts deposited in July, including receipts of July 31, amounted to USD 5,178.30. Tiffany wrote

these checks in July:
No. 899 $ 18.86
No. 900 1,349.55
No. 901 27.75
No. 902 946.92
No. 903 59.70
No. 904 44.01
No. 905 1,093.50
No. 906 15.00
The cash balance per the ledger on 2010 July 31, was USD 30,766.37.
Prepare a bank reconciliation as of 2010 July 31, and any necessary journal entry or entries to correct the
accounts.
Problem B The following information pertains to Hughes Company as of 2010 May 31:
• Balance per bank statement as of 2010 May 31, was USD 59,410.

• Balance per Hughes Company's Cash account at 2010 May 31, was USD 60,904.
• A late deposit on May 31 did not appear on the bank statement, USD 4,275.
• Outstanding checks as of May 31 totaled USD 7,614.

Accounting Principles: A Business Perspective 364 A Global Text