1. Record the petty cash transactions in a petty cash payments record. 2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.) 3. The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 29 for $2,350. The book balance on July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent expense, but was incorrectly entered on the check stub and in the journal as $650. Prepare a bank reconciliation and make any necessary journal entries as of July 31.
1. Record the petty cash transactions in a petty cash payments record. 2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during July.) 3. The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 29 for $2,350. The book balance on July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent expense, but was incorrectly entered on the check stub and in the journal as $650. Prepare a bank reconciliation and make any necessary journal entries as of July 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July:
July 2 Established a petty cash fund by issuing Check No. 301 for $100.
Paid $25 from the petty cash fund for postage. Voucher No. 1.
7
Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2.
8.
Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3.
12
Paid $22 from the petty cash fund for a newspaper advertisement. Voucher No. 4.
13
Issued Check No. 303 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount
needed to replenish the fund in the Description column of the petty cash payments record.)
20
Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5.
24
Paid $12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6.
28
Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7.
31
Issued Check No. 308 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount
needed to replenish the fund in the Description column of the petty cash payments record.)

Transcribed Image Text:The following additional transactions occurred during July:
July 5 Issued Check No. 302 to pay office rent, $650.
15
Issued Check No. 304 for office equipment, $525.
17
Issued Check No. 305 for the purchase of supplies, $133.
18
Issued Check No. 306 to pay attorney fees, $1,000.
30
Issued Check No. 307 to pay newspaper for an advertisement, $200.20.
Required:
1. Record the petty cash transactions in a petty cash payments record.
2. Make all required general journal entries for the cash transactions. (Note: The petty cash fund was established and replenished twice during
July.)
3. The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 29 for $2,350. The book balance on
July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent
expense, but was incorrectly entered on the check stub and in the journal as $650. Prepare a bank reconciliation and make any necessary
journal entries as of July 31.

Transcribed Image Text:GENERAL JOURNAL
Score: 0/261
DATE
ACCOUNT TITLE
POST. REF.
DEBIT
CREDIT
1
2
4
5
7
8
10
11
12
13
14
15
16
17
3.
00

Transcribed Image Text:STATEMENT
Merchant's National Bank
Account Number
1632475
Page Number
TURNER EXCAVATION
220 MAIN STREET
Statement Date
July 31, 20--
OAKHURST, NJ 07755-1461
Statement Instructions
No of withdrawals and charges
We have subtracted these withdrawals
and charges totaling
Beginning Balance
No. of Deposits
We have added these
Resulting in a statement balance
deposits and credits
totalling
1
and Credits
of
$1,250.25
$3,500.00
6.
$1,512.50
$3,237.75
Document Count
Average Daily Balance this Statement Period
Minimum Balance this Statement Period
Date
Amount
If
your Account does not Balance, Please see Reverse Side and Report any discrepancies to our Customer Service Department.
7/1
Beginning Balance
1,250.25
7/5
Check No. 301
-100.00
1,150.25
7/8
Check No. 302
-655.00
495.25
7/9
Deposit
3,500.00
3,995.25
7/15
Check No. 303
-97.00
3,898.25
7/20
Check No. 304
-525.00
3,373.25
7/28
Check No. 305
-133.00
3,240.25
7/31
Service Charge
-2.50
3,237.75
EC-Error Correction
OD-Overdrawn
RC-Return Check Charge
ATM-Automated Teller Machine
TR-Wire Transfer
D/N-Day/Night
Depositor Agrees and Bank Accepts Business Upon the Terms and Conditions of Bank's Rules and Regulations Now in Effect or as May be Hereafter Adopted.
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