Page 365 - Accounting Principles (A Business Perspective)

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Transportation-in $64.12
Office supplies 92.81
May 1 The petty cash fund balance is increased to USD 400.

Prepare the journal entries to record these transactions.
Alternate problems
Alternate problem A The following data pertains to England Company:
Balance per the bank statement dated 2010 June 30, is USD 30,000.
Balance of the Cash in Bank account on the company books as of 2010 June 30, is USD 8,795.
Outstanding checks as of 2010 June 30, total USD 14,300.

Bank deposit of June 30 for USD 2,735 was not included in the deposits per the bank statement.
The bank had collected proceeds of a note, USD 22,612 (of which USD 112 was interest), that it credited to the
England Company account. The bank charged the company a collection fee of USD 15 on the note.
The bank erroneously charged the England Company account for a USD 10,500 debit memo of another company
that has a similar name.
Bank service charges for June, exclusive of the collection fee, amounted to USD 95.
Among the canceled checks was one for USD 700 given in payment of an account. The bookkeeper had recorded

the check at USD 920 in the company records.
A check of Crosby, a customer, for USD 2,447, deposited on June 20, was returned by the bank marked NSF. No
entry has been made to reflect the returned check on the company records.
A check for USD 1,435 of Malcolm, a customer, which had been deposited in the bank, was erroneously recorded
by the bookkeeper as USD 1,570. The check had been received as a payment on the customer's account receivable.
Prepare a bank reconciliation as of 2010 June 30, and any necessary journal entry or entries to correct the
accounts.
Alternate problem B The bank statement of Irish Company's checking account with the 2nd National Bank
shows:

Balance, 2010 June 30 $166,118
Deposits 245,700
411,818
Less: Checks deducted $243,001
Service charges 67 243,068
Balance, 2010 July 31 $168,750
The following additional data are available:
Balance per ledger account as of July 31 was USD 128,209.
A credit memo included with the bank statement indicated the collection of a note by the bank for Irish
Company. Proceeds were USD 13,500, of which USD 375 was interest.
An NSF check in the amount of USD 6,210 was returned by the bank and included in the total of checks
deducted on the bank statement.
Deposits in transit as of July 31 totaled USD 33,750.

Checks outstanding as of July 31 were USD 55,350.
The bank added the USD 29,025 deposit of another company to Irish's account in error.
The bank deducted one of Irish's checks as USD 20,250 instead of the correct amount of USD 2,025.

Accounting Principles: A Business Perspective 366 A Global Text