Case Cash and Receivables
Case Chapter 7 Cash and Receivables
1. Petty Cash (10 min.)
The petty cash fund of $200 for Walsh Company appeared as follows on December 31, 2008:
Cash $93.60
Petty cash vouchers Freight in $21.40 Postage 40.00 Balloons for a special occasion 18.00 Meals 25.00
Instructions
1. Prepare the journal entries required to establish the petty cash fund.
2. Prepare in general journal form the entry to replenish the fund.
3. On December 31, the office manager gives instructions to increase the petty cash fund by $100. Make the appropriate journal entry.
2. Bank Reconciliation (25 min.)
Reebles Food Store developed the following information in recording its bank statement for the month of March.
Balance per books March 31 $ 2,905
Balance per bank statement March 31 $10,900
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(1) Checks written in March but still outstanding $7,000.
(2) Checks written in February but still outstanding $2,800.
(3) Deposits of March 30 and 31 not yet recorded by bank $5,200.
(4) NSF check of customer returned by bank $1,200.
(5) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549.
(6) Bank service charge for March was $50.
(7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March.
(8) The bank collected a note receivable for the company for $4,000 plus $150 interest revenue.
Instructions
(a) Prepare a bank reconciliation for Reebles Food Store at March 31.
(b) Prepare any adjusting entries necessary as a result of the bank reconciliation.
3. Sales Gross and Net ( 10 Min)
On January 4, Mary company sold to Andry Company merchandise at a sales price of $ 6,000 with terms of 2/10, n/30, f.o.b shipping point. An invoice totaling $45 was
1. Petty Cash (10 min.)
The petty cash fund of $200 for Walsh Company appeared as follows on December 31, 2008:
Cash $93.60
Petty cash vouchers Freight in $21.40 Postage 40.00 Balloons for a special occasion 18.00 Meals 25.00
Instructions
1. Prepare the journal entries required to establish the petty cash fund.
2. Prepare in general journal form the entry to replenish the fund.
3. On December 31, the office manager gives instructions to increase the petty cash fund by $100. Make the appropriate journal entry.
2. Bank Reconciliation (25 min.)
Reebles Food Store developed the following information in recording its bank statement for the month of March.
Balance per books March 31 $ 2,905
Balance per bank statement March 31 $10,900
—————————————————————————————————————
(1) Checks written in March but still outstanding $7,000.
(2) Checks written in February but still outstanding $2,800.
(3) Deposits of March 30 and 31 not yet recorded by bank $5,200.
(4) NSF check of customer returned by bank $1,200.
(5) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549.
(6) Bank service charge for March was $50.
(7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March.
(8) The bank collected a note receivable for the company for $4,000 plus $150 interest revenue.
Instructions
(a) Prepare a bank reconciliation for Reebles Food Store at March 31.
(b) Prepare any adjusting entries necessary as a result of the bank reconciliation.
3. Sales Gross and Net ( 10 Min)
On January 4, Mary company sold to Andry Company merchandise at a sales price of $ 6,000 with terms of 2/10, n/30, f.o.b shipping point. An invoice totaling $45 was