1.

Items on Company's Bank Statement

The following items may appear on a bank statement:

1. Bank correction of an error from posting another customer's check (disbursement) to the company's account

2. EFT deposit

3. Loan proceeds

4. NSF check

Indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company's account:

Item	Appears on the Bank Statement as a Debit or Credit Memo	Increases or Decreases the Balance of the Company's Bank Account
1. Bank correction of an error from posting another customer's check (disbursement) to the company's account
2. EFT deposit
3. Loan proceeds
4. NSF check

2.

Bank Reconciliation

The following data were gathered to use in reconciling the bank account of Azalea Company:

Balance per bank	$ 33,840
Balance per company records	28,225
Bank service charges	155
Deposit in transit	4,980
NSF check	1,840
Outstanding checks	12,590

a. What is the adjusted balance on the bank reconciliation? $

b. Journalize any necessary entries for Azalea Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.

Options:

• Accounts Payable
• Accounts Receivable
• Cash
• Interest Revenue
• Notes Receivable

3.

Petty Cash Fund

Prepare journal entries for each of the following. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Issued a check to establish a petty cash fund of $700.

b. The amount of cash in the petty cash fund is $220. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $282 and miscellaneous selling expense, $178. Record any missing funds in the cash short and over account. For a compound transaction, if an amount box does not require an entry, leave it blank.

Options:

• Accounts Payable
• Accounts Receivable
• Cash
• Cash Short and Over
• Miscellaneous Selling Expense
• Petty Cash
• Store Supplies