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2. Ernest Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $200. During March the following
2. Ernest Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $200. During March the following petty cash receipts were found in the petty cash box. Receipt Date No. For Amount 3/5 1 Stamp Inventory $74 7 2 Freight-Out 42 9 3 Miscellaneous Expense 22 11 4 Travel Expense 49 The fund was replenished on March 15 when the fund contained $9 in cash. On March 20, the amount in the fund was increased to $300. Instructions Journalize the entries in March that pertain to the operation of the petty cash fund. 3. Bell Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31 Balance per bank statement March 31 $ 3,664 $10,900 (1) Checks written in March but still outstanding $7,000. (2) Checks written in February but still outstanding $3,100. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4) NSF check of customer returned by bank $1,200. (5) Check No. 210 for $593 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $539. The fund was replenished on March 15 when the fund contained $9 in cash. On March 20, the amount in the fund was increased to $300. Instructions Journalize the entries in March that pertain to the operation of the petty cash fund. 3. Bell Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31 Balance per bank statement March 31 $ 3,664 $10,900 (1) Checks written in March but still outstanding $7,000. (2) Checks written in February but still outstanding $3,100. (3) Deposits of March 30 and 31 not yet recorded by bank $5,200. (4) NSF check of customer returned by bank $1,200. (5) Check No. 210 for $593 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $539. (6) Bank service charge for March was $50. (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March. (8) The bank collected a note receivable for the company for $3,000 plus $100 interest revenue. Instructions Prepare a bank reconciliation at March 31
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