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Required information Exercise 6-10A Adjusting the cash account LO 6-3 [The following information applies to the questions displayed below.) As of June 30, Year 1, the bank statement showed an ending balance of $16,144. The unadjusted Cash account balance was $15,302. The following information is available: 1. Deposit in transit: $2,540. 2. Credit memo in bank statement for interest earned in June: $6. 3. Outstanding check: $3,383. 4. Debit memo for service charge: $7. Exercise 6-10A Part a Required a. Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information. (Amounts to be deducted should be indicated with minus sign.) Bank Reconciliation Unadjusted bank balance 6/30/Year 1 True cash balance 6/30/Year 1 $ 0 Unadjusted book balance 6/30/Year 1 True cash balance 6/30/Year 1 $ 0 ! Required information Exercise 6-10A Adjusting the cash account LO 6-3 [The following information applies to the questions displayed below.] As of June 30, Year 1, the bank statement showed an ending balance of $16,144. The unadjusted Cash account balance was $15,302. The following information is available: 1. Deposit in transit: $2,540. 2. Credit memo in bank statement for interest earned in June: $6. 3. Outstanding check: $3,383. 4. Debit memo for service charge: $7. Exercise 6-10A Part b b. Record in general journal format the adjusting entries necessary to correct the unadjusted book balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry for interest revenue. Note: Enter debits before credits. Event General Journal Debit Credit Adj 1 Record entry Clear entry View general journal Exercise 6-11A Determining the true cash balance, starting with the unadjusted bank balance LO 6-3 The following information is available for Trinkle Company for the month of June: 1. The unadjusted balance per the bank statement on June 30 was $55,571. 2. Deposits in transit on June 30 were $2,760. 3. A debit memo was included with the bank statement for a service charge of $12. 4. A $4,027 check written in June had not been paid by the bank. 5. The bank statement included a $1,350 credit memo for the collection of a note. The principal of the note was $1,295, and the interest collected amounted to $55. 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.) True cash balance ! Required information Problem 6-18A Preparing a bank reconciliation LO 6-3 [The following information applies to the questions displayed below.] Rick Hall owns a card shop: Hall's Cards. The following cash information is available for the month of August Year 1. As of August 31, the bank statement shows a balance of $13,300. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,923. A review of the bank statement revealed the following information: 1. A deposit of $1,480 on August 31, Year 1, does not appear on the August bank statement. 2. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $3,150 but was recorded on the books as $4,050. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,035 were found to be outstanding. 4. A debit memo for $78 was included in the bank statement for the purchase of a new supply of checks. Problem 6-18A Part a Required a. Prepare a bank reconciliation at the end of August showing the true cash balance. HALL'S CARDS Bank Reconciliation August 31, Year 1 Unadjusted Bank Balance, August 31, Year 1 $ 0 True Cash Balance, August 31, Year 1 Unadjusted Book Balance, August 31, Year 1 True Cash Balance, August 31, Year 1 $ 0 Problem 6-18A Preparing a bank reconciliation LO 6-3 (The following information applies to the questions displayed below.) Rick Hall owns a card shop: Hall's Cards. The following cash information is available for the month of August Year 1. As of August 31, the bank statement shows a balance of $13,300. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,923. A review of the bank statement revealed the following information: 1. A deposit of $1,480 on August 31, Year 1, does not appear on the August bank statement. 2. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $3,150 but was recorded on the books as $4,050. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,035 were found to be outstanding. 4. A debit memo for $78 was included in the bank statement for the purchase of a new supply of checks. Problem 6-18A Part b b. Prepare any necessary journal entries to adjust the books to the true cash balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to correct the error created while recording check for inventory. Note: Enter debits before credits. Event General Journal Debit Credit 1 Problem 6-24A Petty cash fund LO 6-4 [The following information applies to the questions displayed below. Austin Co. established a petty cash fund by issuing a check for $245 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month: Stamps Miscellaneous items Employee supper money Taxi fare Window-washing service $ 43 16 58 38 73 There was $13 of currency in the petty cash box at the time it was replenished. Problem 6-24A Part a Required a. Prepare all general journal entries necessary to (1) establish the fund, (2) reimburse employees, (3) recognize the expenses and replenish the fund. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B > Record the entry to establish the fund. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required information Problem 6-24A Petty cash fund LO 6-4 [The following information applies to the questions displayed below.] Austin Co. established a petty cash fund by issuing a check for $245 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month: Stamps Miscellaneous items Employee supper money Taxi fare Window-washing service $ 43 16 58 38 73 There was $13 of currency in the petty cash box at the time it was replenished. Problem 6-24A Part c c. Identify the event depicted in each journal entry recorded in Requirement a as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). (Select "NE" if there is no effect.) Event Number Type of Event 1. 2. 3. Required information Problem 6-24A Petty cash fund LO 6-4 (The following information applies to the questions displayed below.) Austin Co. established a petty cash fund by issuing a check for $245 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month: Stamps Miscellaneous items Employee supper money Taxi fare Window-washing service $ 43 16 58 38 73 There was $13 of currency in the petty cash box at the time it was replenished. Problem 6-24A Part d d. Show the effects of the events in Requirement a on the financial statements using a horizontal statements model like the following one. (In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an account was not affected by the event. Enter any decreases to account balances with a minus sign.) Effect of Events on the Financial Statements Assets No: Liab. Equity Rev. Exp. Net Inc. Cash Flow Cash + Petty Cash 1. 2. 3