$1.$ Han$$s Supplies$$ bank statement contained a $$320$ NSF check that one of its customers had written to pay for supplies purchased.

Required

Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal statements model.

Is the recognition of the NSF check on Han$$s books an asset source, use, or exchange transaction?

Suppose the customer redeems the check by giving Han's $$340$ cash in exchange for the bad check. The additional $$20$ paid a service fee charged by Han's. Show the effects on the financial statements in the horizontal statements model.

Is the receipt of cash referenced in Requirement c an asset source, use, or exchange transaction?

Record in general journal form the adjusting entry for the NSF check and the entry for redemption of the check by the customer.

$2.$ As of June $30,$ Year $1,$ the bank statement showed an ending balance of $$17,664.$ The unadjusted Cash account balance was $$16,885.$ The following information is available:

Deposit in transit: $$2,295.$

Credit memo in bank statement for interest earned in June: $$18.$

Outstanding check: $$3,063.$

Debit memo for service charge: $$7.$

Required

a$.$ Determine the true cash balance by preparing a bank reconciliation as of June $30,$ Year $1,$ using the preceding information.

$3.$ The following information is available for Trinkle Company for the month of June:

The unadjusted balance per the bank statement on June $30$ was $$53,819.$

Deposits in transit on June $30$ were $$2,145.$

A debit memo was included with the bank statement for a service charge of $$27.$

A $$5,514$ check written in June had not been paid by the bank.

The bank statement included a $$850$ credit memo for the collection of a note. The principal of the note was $$805,$ and the interest collected amounted to $$45.$

Required

Determine the true cash balance as of June $30.($Hint: It is not necessary to use all of the preceding items to determine the true balance.$)$

$4.$ Nickleson Company had an unadjusted cash balance of $$4,097$ as of May $31.$ The company$$s bank statement, also dated May $31,$ included an NSF check in the amount of $$75$ written by one of Nickleson$$s customers. There were $$377$ in outstanding checks and $$210$ in deposits in transit as of May $31.$ According to the bank statement, service charges were $$40,$ and the bank collected a note receivable of $$1,300$ for Nickleson. The bank statement also showed $$6$ of interest revenue earned by Nickleson.

Required

Determine the true cash balance as of May $31.($Hint: It is not necessary to use all of the preceding items to determine the true balance.$)$

$5.$ Fresh Foods established a petty cash fund of $$300$ on January $2.$ On January $31,$ the fund contained cash of $$111\mathrm{.}45$ and vouchers for the following cash payments.

Maintenance expense

$ $76\mathrm{.}00$

Office supplies

$87\mathrm{.}00$

Transportation expense

$21\mathrm{.}75$

The three distinct accounting events affecting the petty cash fund for the period were $(1)$ establishment of the fund, $(2)$ reimbursements made to employees, and $(3)$ recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment.

Required

a$.$ Show each of the three events in a horizontal statements model.

$6.$ Fresh Foods established a petty cash fund of $$300$ on January $2.$ On January $31,$ the fund contained cash of $$111\mathrm{.}45$ and vouchers for the following cash payments.

Maintenance expense

$ $76\mathrm{.}00$

Office supplies

$87\mathrm{.}00$

Transportation expense

$21\mathrm{.}75$

The three distinct accounting events affecting the petty cash fund for the period were $(1)$ establishment of the fund, $(2)$ reimbursements made to employees, and $(3)$ recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment.

b$.$ Record the events in general journal format.