Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6A-2. (Somewhat similar to problem 6A-1) Record the following transactions in general journal format. June 1 Start a petty cash fund in the amount of

image text in transcribed
image text in transcribed
image text in transcribed
6A-2. (Somewhat similar to problem 6A-1) Record the following transactions in general journal format. June 1 Start a petty cash fund in the amount of $690. June 7 An executive collects $97 from the petty cash administrator as a reimbursement for a client's taxi. The executive gives the administrator a receipt for the full amount. June 30 The petty cash fund is replenished. July 6 An entry for today's cash receipts needs to be recorded in the journal. The cash register tape indicates receipts of $2,740. Unfortunately the actual cash in the drawer is only 1,230. Chapter 6 Section A 6A-13 6A-3. (A completely worked similar problem is provided in the body of this section of the text.) KEAL Incorporated received the following bank statement regarding one of their checking accounts dated July 31, 20x1. KEAL Incorporated Summary as of July 31, 20x1 Account # 12345 Beginning Total Service Balance Total Deposits Withdrawals Charges 7,980.81 6,031.62 7,044.50 25.00 Ending Balance 6,942.93 Deposits Deposit Deposit Deposit Collection Interest *******Checking Account Transactions*** Date Amount 7-03-x1 1.633.00 7-08-x1 574.00 7-08-x1 761.30 7-15-x1 3,000.00 7-31-x1 63.32 Charges Service Charge 7-31-xl NSF (#764) 7-06-x1 25.00 589.00 Checks Number 921 922 924 145 925 Date 7-04-1 7-06-x1 7-10-x1 7-15-x1 7-27-x1 Amount 2,400.00 1,322.30 291.00 1.671.00 771.20 KEAL's cash T-account has a debit balance of $4.948.08 prior to any entries that result from receipt of the bank statement. KEAL's accountants also compiled the following information from the company records: a. The company mailed a deposit on July 29 in the amount of $742.00, which has not yet reached the bank. Chapter 6 Section A 6A-14 b. The company has written the following two checks and recorded the appropriate entries in the company books. These checks have not yet been presented to KEAL's bank for payment: Number 923 926 Date 7-07-X1 7-28-xl Amount 1,240.00 790.53 c. The 7-15-x1 bank collection was money that was collected by the bank for KEAL from a customer. It included a principal amount of $2,250 and interest of $750. d. Check number 145 was not written by KEAL. This check was charged against KEAL's banking account in error. e. Check number 924 paid to the TJ PENCIL Shop for supplies shows on the company books as a charge of $219, not the $291 shown on the bank statement. In checking with past payment records the company discovers that the bank statement amount is correct. f. The NSF check for $589 had been received from a customer as payment on account. Required: 1. Prepare the bank reconciliation for July 31, 20x1. 2. Make the journal entries necessary to update KEAL's cash T-account as of July 31, 20x1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Political Standards

Authors: Karthik Ramanna

1st Edition

022652809X, 9780226528090

More Books

Students also viewed these Accounting questions

Question

What are the core functions of the universitys HRM department?

Answered: 1 week ago

Question

Identify a set of competencies for tenured faculty

Answered: 1 week ago