2, Interest earned on the cash balance in the bank is recorded by the bank as Multiple Choice An increase in the banks asset account A decrease in the banks asset account A decrease in the depositors bank account An increase in the depositors bank account An increase in the banks expense account 3, Which of the following events would cause a bank to reduce a depositor's account Multiple Choice The depositor orders new checks through the bank at a cost of $50 The bank collects a note receivable and related interest on the depositor's behalf There are outstanding checks drawn on the account at month end There are deposits in transit on the account at month end The bank corrects an error from previous month by adding $75 to the depositor account 4, Wilson Co set up a petty cash fund for payments of small amounts The following transactions involving the petty cash fund occurred in May May 1 Prepared a company check for $400 to establish the petty cash fund May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1 a Paid $133 for janitorial services b Paid $100 for miscellaneous expenses c Paid postage expenses of $66 d Paid $33 to Facebook for advertising expense e Counted $76 remaining in the petty cash box May 16 Prepared a company check for $200 to increase the fund to $600 May 31 The petty cashier reports that $240 cash remains in the fund A company check is drawn to replenish the fund for the following expenditures made since May 15 f Paid postage expenses of $210 g Reimbursed the office manager for business mileage, $105 h Paid $35 to deliver merchandise to a customer, terms FOB destination May 31 The company decides that the May 16 increase in the fund was too large It reduces the fund by $160, leaving a total of $440 Requirement General Journal General Ledger Trial Balance Impact on Income Indicate the impact each transaction had on net income Decreases to net income should be indicated with a minus sign Dates May 01 to May 31 Transaction Impact transaction has on income Amount of increase (decrease) May 1) Prepared a company check for $400 to establish the petty cash fund Net income was unchanged May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1 $133 for janitorial services, $100 for miscellaneous expenses, postage expenses of $66, $33 to Facebook for advertising expense Counted $76 remaining in the petty cash box May 16 Prepared a company check for $200 to increase the fund to $600 Net income was unchanged May 31 The petty cashier reports that $240 cash remains in the fund A company check is drawn to replenish the fund for the following expenditures made since May 15 postage expenses of $210, business mileage, $105, $35 to deliver merchandise to a customer, terms FOB destination May 31 The company decides that the May 16 increase in the fund was too large It reduces the fund by $160, leaving a total of $440 Net income was unchanged In total, net income increased (decreased) by $0

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Posted on Aug 27, 2024

2, Interest earned on the cash balance in the bank is recorded by the bank as:

Multiple Choice

3, Which of the following events would cause a bank to reduce a depositor's account?

Multiple Choice

The depositor orders new checks through the bank at a cost of $50.
The bank collects a note receivable and related interest on the depositor's behalf.
There are outstanding checks drawn on the account at month-end.
There are deposits in transit on the account at month-end.
The bank corrects an error from previous month by adding $75 to the depositor account.

Wilson Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May.

May	1	Prepared a company check for $400 to establish the petty cash fund.
May	15	Prepared a company check to replenish the fund for the following expenditures made since May 1.
		a. Paid $133 for janitorial services.
		b. Paid $100 for miscellaneous expenses.
		c. Paid postage expenses of $66.
		d. Paid $33 to Facebook for advertising expense.
		e. Counted $76 remaining in the petty cash box.
May	16	Prepared a company check for $200 to increase the fund to $600.
May	31	The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
		f. Paid postage expenses of $210.
		g. Reimbursed the office manager for business mileage, $105.
		h. Paid $35 to deliver merchandise to a customer, terms FOB destination.
May	31	The company decides that the May 16 increase in the fund was too large. It reduces the fund by $160, leaving a total of $440.

Indicate the impact each transaction had on net income. Decreases to net income should be indicated with a minus sign.

Dates:

May 01

to:

May 31

Transaction	Impact transaction has on income:	Amount of increase (decrease)
May 1) Prepared a company check for $400 to establish the petty cash fund.	Net income was unchanged
May 15) Prepared a company check to replenish the fund for the following expenditures made since May 1: $133 for janitorial services, $100 for miscellaneous expenses, postage expenses of $66, $33 to Facebook for advertising expense. Counted $76 remaining in the petty cash box.
May 16 Prepared a company check for $200 to increase the fund to $600.	Net income was unchanged
May 31 The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15: postage expenses of $210, business mileage, $105, $35 to deliver merchandise to a customer, terms FOB destination.
May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $160, leaving a total of $440.	Net income was unchanged
In total, net income increased (decreased) by:		$0