Financial Accounting Questions and Answers

Cedar Springs Company completed the following selected transactions during November 2012: Nov. 1. Established a petty cash fund of $850. 12. The cash sales for the day, according to the cash register records, totaled $16,100. The actual cash received from cash sales was $16,175. 30. Petty cash on hand was $70. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: Nov. 2. Store supplies, $100. 10. Express charges on merchandise purchased, $260 (Merchandise Inventory). 14. Office supplies, $125. 15. Office supplies, $80. 18. Postage stamps, $70 (Offi ce Supplies). 20. Repair to fax, $35 (Miscellaneous Administrative Expense). 21. Repair to offi ce door lock, $15 (Miscellaneous Administrative Expense). 22. Postage due on special delivery letter, $40 (Miscellaneous Administrative Expense). 28. Express charges on merchandise purchased, $40 ( Merchandise Inventory). 30. The cash sales for the day, according to the cash register records, tota...

Oneida Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account. CASH ACCOUNT: Balance as of June 1 $9,317.40 CASH RECEIPTS FOR MONTH OF JUNE $9,524.16 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June: Date Amount Date Amount Date Amount June 1 $1,080.50 June 10 $ 896.61 June 22 $ 897.34 3 854.17 15 882.95 24 942.71 8 845.00 17 1,607.64 30 1,517.24 CHECKS WRITTEN: Number and amount of each check issued in June: Check No. Amount Check No. Amount Check No. Amount 740 $237.50 747 Void 754 $ 449.75 741 495.15 748 $450.90 755 272.75 742 501.90 749 640.13 756 113.95 743 671.30 750 276.77 757 407.95 744 560.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298....

The following procedures were recently installed by The Blind Shop: a. At the end of a shift, each cashier counts the cash in his or her cash register, unlocks the cash register record, and compares the amount of cash with the amount on the record to determine cash shortages and overages. b. Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank. c. Each cashier is assigned a separate cash register drawer to which no other cashier has access. d. Vouchers and all supporting documents are perforated with a PAID designation after being paid by the treasurer. e. All sales are rung up on the cash register, and a receipt is given to the customer. All sales are recorded on a record locked inside the cash register. f. Disbursements are made from the petty cash fund only after a petty cash receipt has been completed and signed by the payee. g. The bank reconciliation is prepared by the cashier. Instru...

The cash account for Bravo Bike Co. at May 1, 2012, indicated a balance of $15,085. During May, the total cash deposited was $75,100 and checks written totaled $69,750. The bank statement indicated a balance of $25,460 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $11,360. b. A deposit of $9,200, representing receipts of May 31, had been made too late to appear on the bank statement. c. The bank had collected for Bravo Bike Co. $4,725 on a note left for collection. The face of the note was $4,500. d. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. e. A check for $410 returned with the statement had been recorded by Bravo Bike Co. as $140. The check was for the payment of an obligation to Portage Co. on account. f. Bank service charges for July amounted to $40. g. A check for $1,100 from Elkhart Co. was returne...

Picasso Restoration Company completed the following selected transactions during August 2012: Aug. 1. Established a petty cash fund of $750. 10. The cash sales for the day, according to the cash register records, totaled $9,780. The actual cash received from cash sales was $9,800. 31. Petty cash on hand was $240. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: Aug. 3. Store supplies, $251. 7. Express charges on merchandise sold, $60 (Delivery Expense). 9. Office supplies, $20. 13. Office supplies, $30. 19. Postage stamps, $11 (Offi ce Supplies). 21. Repair to office file cabinet lock, $40 (Miscellaneous Administrative Expense). Aug. 22. Postage due on special delivery letter, $18 (Miscellaneous Administrative Expense). 24. Express charges on merchandise sold, $50 (Delivery Expense). 30. Office supplies, $15. 31. The cash sales for the day, according to the cash register records, totaled $11,200. The actual cash received from cash...

The cash account for Online Medical Co. at June 30, 2012, indicated a balance of $9,375. The bank statement indicated a balance of $10,760 on June 30, 2012. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $3,900. b. A deposit of $4,000, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank had collected $2,100 on a note left for collection. The face of the note was $2,000. d. A check for $550 returned with the statement had been incorrectly recorded by Online Medical Co. as $500. The check was for the payment of an obligation to Hirsch Co. for the purchase on account. e. A check drawn for $60 had been erroneously charged by the bank as $600. f. Bank service charges for June amounted to $25. Instructions 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. The accounts have not been closed. 3. If a balance ...

The following procedures were recently installed by Pine Creek Company: a. Along with petty cash expense receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund. b. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. c. At the end of each day, all cash receipts are placed in the bank’s night depository. d. The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer’s office for approval. e. At the end of each day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank. f. The bank reconciliation is prepared by the cashier, who works under the supe...