2020 A debit to Supplies References Learning Objective: 06-P2 Explain and record petty cash fund transactions Multiple Choice Difficulty: 2 Medium 17. Award: 4.00 points Spencer Co. has a $200 petty cash fund. At the end of the first month the accumulated receipts represent $43 for delivery expenses. $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. The journal entry to record the reimbursement of the account includes a: Debit to Petty Cash for $200 O Debit to Cash Over and Short for $18. Credit to Cash for $182. Credit to Inventory for $127. Credit to Cash Over and Short for $18. References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-P2 Explain and record petty cash fund transactions. 18. Award: 4.00 points If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should O Deduct the deposit from the bank statement balance. Skip the bank reconciliation this month Deduct the deposit from the September 30 book balance and add it to the October 1 book balance Add the deposit to the book balance of cash Add the deposit to the bank statement balance. Assignment Print View 52020 References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-P3 Prepare a bank reconciliation 19. Award: 4.00 points During the month of July, Clanton Industries issued a check in the amount of $845 to a supplier on account The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should: Deduct the check amount from the book balance of cash. Add the check amount to the book balance of cash. O Deduct the check amount from the bank balance. Add the check amount to the bank balance Make a journal entry in the company records for an error. References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-P3 Prepare a bank reconciliation 20. Award: 4.00 points Internal controls are crucial to global companies because of all of the following risks except Possible misstatement of financial Information Possible fraud. O Controls are significantly different across the globe. Additional costs of inefficient operations. O O Management's inability to certify the effectiveness of the controls. Assignment Print View References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-C1 Define internal control and identify its purpose and principles 21. Award: 4.00 points Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $18,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: 1,450 Deposit in transit Outstanding checks Additionally, a 529 check written and recorded by the company correctly was recorded by the bank as a $92 deduction The adjusted cash balance per the bank records should be: $18,974 $18.91 $20711 $19,037 $16,137 References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-P3 Prepare a bank reconciliation 22. Award: 4.00 points Franklin Company's bank reconciliation as of August 31 is shown below. -Depot intrat - Outstanding checks Adjusted bank bance $14.237 4,500 -3.900 Book balance Bank service fees Note collected Adjusted book balance $13.162 $147 50 1725 $143 Assignment Print View 5/6/2020 The adjusting journal entries that Claybom must record as a result of the bank reconciliation include O Debit Cash $4,500 credit Sales $4,500 Debit Cash $1725; credit Notes Receivable $1,725. Debit Cash $50, credit Bank Service Fee Expense $50. Debit Misc. Expense $3.900: Credit Cash $3,900. Debit Notes Receivable $4725; credit Cash $1,725. References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-P3 Prepare a bank reconciliation 23. Award: 4.00 points Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory. and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is: O Debit Cash $250;credit Petty Cash $250. Debit Petty Cash $250, credit Accounts Payable $250. Debit Miscellaneous Expense $250credit Cash $250 Debit Petty Cash $250 credit Cash $250 O Debit Cash $250, credit Accounts Payable $250. References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-P2 Explain and record petty cash fund transactions 24. Award: 4.00 points 5/6/2020 Assignment Print View Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies. $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of 58. The journal entry to replenish the fund on January 31 is: O De Office Supplies, $80: Dr. Merchandise Inventory. $160, Dr. Miscellaneous expenses. $20: Dr. Cash over and short, $8: Cr. Petty cash, $268. O De Office Supplies, $80: Dr. Merchandise inventory. $160; Dr. Miscellaneous expenses. $20.C. Cash over and short. $8: Ct. Petty cash. $252 De Office Supplies, $80, Dr. Merchandise inventory. $160, Dr. Miscellaneous expenses, $20.C. Cash over and short, $8: Cr. Cash, $252. O Dr Office Supplies, $80, Dr. Merchandise inventory. $160; Dr. Miscellaneous expenses, $20: Dr. Cash over and short. $8; Cr. Cash, $268. O Dr Office Supplies, $80; Dr. Merchandise inventory S160: Dr. Miscellaneous expenses. $20.C Cash over and short, $8: Cr. Petty cash, $400. References Multiple Choice Difficulty: 2 Medium Learning Objective: 06-P2 Explain and record petty cash fund transactions 25. Award: 4.00 points Pelcher Co. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $110 for office supplies. $140 for merchandise inventory, and $70 for miscellaneous expenses. There is a cash overage of $4. Based on this information, the amount of cash in the fund before the replenishment is: $400 $320 $80 $76 $84 References Multiple Choice Dick 2 Medium Learning objective: 06-P2 Explain and record petty cash fund transactions