ACCT291T PRINCIPLES OF ACCOUNTING 2 WEEK 3 APPLY

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Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory.

Feb. 2 Wrote a $350 check to establish a petty cash fund.
  5 Purchased paper for the copier for $14.55 that is immediately used.
  9 Paid $30.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
  12 Paid $7.65 postage to deliver a contract to a client.
  14 Reimbursed Adina Sharon, the manager, $69 for mileage on her car.
  20 Purchased office paper for $67.77 that is immediately used.
  23 Paid a courier $22 to deliver merchandise sold to a customer, terms FOB destination.
  25 Paid $11.30 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory.
  27 Paid $54 for postage expenses.
  28 The fund had $23.33 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
  28 The petty cash fund amount is increased by $130 to a total of $480.


 
Required:

1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount.

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Prepare the journal entry to establish the petty cash fund.

Journal entry worksheet

  • Wrote a $350 check to establish a petty cash fund.

Note: Enter debits before credits.

DateGeneral JournalDebitCredit
Feb 02
  • Required 1

Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. (Round your answers to 2 decimal places.)

NAKASHIMA GALLERY
Petty Cash Payments Report (for February)
Delivery expense
Mileage expense
Postage expense
0.00
Merchandise inventory (transportation-in)
0.00
Office supplies expense
0.00
Total
 
NAKASHIMA GALLERY Petty Cash Payments Report (for February) Delivery expense Mileage expense Postage expense 0.00 Merchandise inventory (transportation-in) 0.00 Office supplies expense 0.00 Total

Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.)

Journal entry worksheet

  • Record the reimbursement of the petty cash fund.

Note: Enter debits before credits.

DateGeneral JournalDebitCredit
Feb 28
 
Date General Journal Debit Credit Feb 28

Required information

Problem 8-4A Preparing a bank reconciliation and recording adjustments LO P3

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[The following information applies to the questions displayed below.]

 

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.

  1. On July 31, the company’s Cash account has a $24,838 debit balance, but its July bank statement shows a $27,820 cash balance.
  2. Check No. 3031 for $1,760, Check No. 3065 for $656, and Check No. 3069 for $2,528 are outstanding checks as of July 31.
  3. Check No. 3056 for July rent expense was correctly written and drawn for $1,290 but was erroneously entered in the accounting records as $1,280.
  4. The July bank statement shows the bank collected $10,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
  5. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
  6. The July statement shows a $15 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
  7. Branch’s July 31 daily cash receipts of $11,132 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

Problem 8-4A Part 1

Required:
 
1.
 Prepare the bank reconciliation for this company as of July 31.
 

 Required information

Problem 8-4A Preparing a bank reconciliation and recording adjustments LO P3

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[The following information applies to the questions displayed below.]

 

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.

  1. On July 31, the company’s Cash account has a $24,838 debit balance, but its July bank statement shows a $27,820 cash balance.
  2. Check No. 3031 for $1,760, Check No. 3065 for $656, and Check No. 3069 for $2,528 are outstanding checks as of July 31.
  3. Check No. 3056 for July rent expense was correctly written and drawn for $1,290 but was erroneously entered in the accounting records as $1,280.
  4. The July bank statement shows the bank collected $10,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
  5. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
  6. The July statement shows a $15 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
  7. Branch’s July 31 daily cash receipts of $11,132 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

Problem 8-4A Part 1

Required:
 
1.
 Prepare the bank reconciliation for this company as of July 31.
 

ACCT291T PRINCIPLES OF ACCOUNTING 2 WEEK 3 APPLY



Problem 8-4A Preparing a bank reconciliation and recording adjustments LO P3

Skip to question

[The following information applies to the questions displayed below.]

 

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.

  1. On July 31, the company’s Cash account has a $24,838 debit balance, but its July bank statement shows a $27,820 cash balance.
  2. Check No. 3031 for $1,760, Check No. 3065 for $656, and Check No. 3069 for $2,528 are outstanding checks as of July 31.
  3. Check No. 3056 for July rent expense was correctly written and drawn for $1,290 but was erroneously entered in the accounting records as $1,280.
  4. The July bank statement shows the bank collected $10,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
  5. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
  6. The July statement shows a $15 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
  7. Branch’s July 31 daily cash receipts of $11,132 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

Problem 8-4A Part 2

2. Prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
 

Journal entry worksheet

  • Record the adjusting entry required, if any, related to the July 31 cash balance.

Note: Enter debits before credits.

TransactionGeneral JournalDebitCredit
a.


 
Transaction General Journal Debit Credit a.