June 1. Established a petty cash fund of $1,000. 12. The cash sales for the day, according to the cash register records, totaled $9,440. The actual cash received from cash sales was $9,506. 30. Petty cash on hand was $46. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: June 2. Store supplies, $375. 10. Express charges on merchandise purchased, $105 (Inventory). 14. Office supplies, $85. 15. Office supplies, $90. 18. Postage stamps, $33 (Office Supplies). 20. Repair to fax, $100 (Miscellaneous Administrative Expense). 21. Repair to office door lock, $25 (Miscellaneous Administrative Expense). 22. Postage due on special delivery letter, $9 (Miscellaneous Administrative Expense). 28. Express charges on merchandise purchased, $110 (Inventory). 30. The cash sales for the day, according to the cash register records, totaled $13,390. The actual cash received from cash sales was $13,350. 30. Increased the petty cash fund by $200. Instructions Journalize the transactions. PR 7-3B Bank reconciliation and entries Obj. 5 The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $17,865. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $6,095 on a note left for collection. The face of the note was $5,750. A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $1,810 had been incorrectly charged by the bank as $1,180. Bank service charges for July amounted to $80. Instructions Prepare a bank reconciliation. Answer Check Figure: Adjusted balance: $24,305 Journalize the necessary entries. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?

June 1. Established a petty cash fund of $1,000. 12. The cash sales for the day, according to the cash register records, totaled $9,440. The actual cash received from cash sales was $9,506. 30. Petty cash on hand was $46. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: June 2. Store supplies, $375. 10. Express charges on merchandise purchased, $105 (Inventory). 14. Office supplies, $85. 15. Office supplies, $90. 18. Postage stamps, $33 (Office Supplies). 20. Repair to fax, $100 (Miscellaneous Administrative Expense). 21. Repair to office door lock, $25 (Miscellaneous Administrative Expense). 22. Postage due on special delivery letter, $9 (Miscellaneous Administrative Expense). 28. Express charges on merchandise purchased, $110 (Inventory). 30. The cash sales for the day, according to the cash register records, totaled $13,390. The actual cash received from cash sales was $13,350. 30. Increased the petty cash fund by $200. Instructions Journalize the transactions. PR 7-3B Bank reconciliation and entries Obj. 5 The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $17,865. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $6,095 on a note left for collection. The face of the note was $5,750. A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $1,810 had been incorrectly charged by the bank as $1,180. Bank service charges for July amounted to $80. Instructions Prepare a bank reconciliation. Answer Check Figure: Adjusted balance: $24,305 Journalize the necessary entries. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bank reconciliation and entries

Obj. 5 The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

Checks outstanding totaled $17,865.
A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.
The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.
A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account.
A check drawn for $1,810 had been incorrectly charged by the bank as $1,180.
Bank service charges for July amounted to $80.

Instructions

Prepare a bank reconciliation.

Answer
Check Figure: Adjusted balance: $24,305
Journalize the necessary entries.
If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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June 1.	Established a petty cash fund of $1,000.
12.	The cash sales for the day, according to the cash register records, totaled $9,440. The actual cash received from cash sales was $9,506.
30.	Petty cash on hand was $46. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:
	June 2.	Store supplies, $375.
	10.	Express charges on merchandise purchased, $105 (Inventory).
	14.	Office supplies, $85.
	15.	Office supplies, $90.
	18.	Postage stamps, $33 (Office Supplies).
	20.	Repair to fax, $100 (Miscellaneous Administrative Expense).
	21.	Repair to office door lock, $25 (Miscellaneous Administrative Expense).
	22.	Postage due on special delivery letter, $9 (Miscellaneous Administrative Expense).
	28.	Express charges on merchandise purchased, $110 (Inventory).
30.	The cash sales for the day, according to the cash register records, totaled $13,390. The actual cash received from cash sales was $13,350.
30.	Increased the petty cash fund by $200.