a) After completing Exercise TWO, what is the correct Adjusted balance per the Books? See circle on the printed exercise. Note: This adjusted balance should match the Adjusted Balance per the Bank.

ACG 2021 CHAPTER 6- EXERCISE Version 5.1 EXERCISE ONE: Bank Reconciliation Example Try completing a bank reconciliation for Cartwright Corp, using the information below. The reconciliation form is on the next page. The solution is on the page following the form. Try not to look at the solution first! Statewide Savings Bank Bank Statement 588-4448-45 October 31, 20XX Ending Balance - October 31st Checks and Debits Check No. Amount 563 48.00 564 720.00 565 405.00 566 85.00 568 67.00 Svc. Chrge-DM 15.00 NSF-DM 135.00 Account: Date: $ 10,410.00 Deposits and Credits Date Amount 15-Oct 4,000.00 22-Oct 2.650.00 27-Oct 1,400.00 A/R-CM 1.260.00 Following is a list of checks and deposits recorded on Cartwright's books: Checks Deposits Number Amount Date Amount 563 48.00 15-Oct 4,000.00 564 720.00 22-Oct 2,650.00 565 450.00 27-Oct 1,400.00 566 85.00 31-Oct 1.865.00 567 800.00 568 67.00 569 452.00 Other Information: 1) The cash balance showing on Cartwright's books as of October 31st is $9,868, 2) Check number #565 was correctly written and recorded by the bank for $405, however, it was recorded on Cartwright's books for $450. The check was to pay utilities expense. 3) The Debit Memo (DM) was for bank service charges. Cartwright records service charges to the Miscellaneious Expense account. 4) A check previously deposited by Cartwright was returned (DM) for NSF- $135 The check was from Steve Smith in payment of his account. 5) The Credit Memo (CM) was for the collection of an accounts receivable balance from one of Cartwright's customers. BANK RECONCILIATION Reg. 1 Bank Reconciliation October 31st BANK: Balance, October 31st Add: Less: Adjusted Balance, October 31st BOOKS: Balance, October 31st Add: Less: Adjusted Balance, October 31st Reg. 2 Journal Entries Accounts Debit Credit Date October 31 31 BANK RECONCILIATION- SOLUTION Reg. 1 Bank Reconciliation October 31st BANK: Balance, October 31st $10,410 Add: Deposits in transit 31-Oct Less: Outstanding checks: #567 #569 Adjusted Balance, October 31st (800) (452) $11,023 BOOKS: Balance, October 31st $9,868 Add: Correction of Error A/R collected 45 1,260 Less: (15) Bank service charge NSF Check (135) Adjusted Balance, October 31st $11,023 Reg. 2 Debit Credit Date October Journal Entries Accounts 31 Cash Utilities Expense 45 45 31 Miscellaneous Expense Cash 135 31 Accounts Receivable Cash 135 1,260 31 Cash Accounts Receivable 1,260 EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8.140. Outstanding checks amounted to $850, and deposits in transit were $2.500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as S510. 1) Prepare a bank reconciliation at June 30th. 2) Prepare any necessary journal entries. Req. 1 Bank Reconciliation June 30th BANK: Balance, June 30 Add. Less: Adjusted Balance, June 30 $ BOOKS: Balance, June 30 1 $ Add: Less: Adjusted Balance, June 30 Req. 2 Journal Entries Accounts Date Debit Credit June 30 30 ACCT 2021 - CHAPTER 6 - PETTY CASH Instructions: Use the T-accounts to complete the following petty cash problem. If you get stuck, review the examples in the text that describe an imprest basis system. Try not to look at the solution on the next page. Swenson Co. established a petty cash fund of $100 on March 1st. On March 31st the fund contained cash of $13 and receipts for the following: Postage Fuel Office Supplies Total S86 On April 1st, the petty cash fund was replinished. Record the following: 1) The entry to establish the fund on March 1st. 2) The entry to recognize the disbursements and replenish the petty cash fund to a $100 on April 1. Cash Petty Cash Office Supplies Postage Expense Fuel Expense Cash Short/Over NOTE: The Petty Cash account always maintains a balance of $100 (in this example) even though the actual balance of cash in the fund may differ throughout the month. Account Debit Credit Date 1-Mar 1-Apr ACCT 2021 - CHAPTER 6 - PETTY CASH Version 5.1 Instructions: Use the T-accounts to complete the following petty cash problem. If you get stuck, review the examples in the text that describe an imprest basis system. Try not to look at the solution on the next page. Swenson Co. established a petty cash fund of $100 on March 1st. On March 31st the fund contained cash of $13 and receipts for the following: Postage Fuel Office Supplies Total S86 On April 1st, the petty cash fund was replinished. Record the following: 1) The entry to establish the fund on March 1st. 2) The entry to recognize the disbursements and replenish the petty cash fund to a $100 on April 1. Cash 100 (1) 87 (2) Petty Cash 100 (1) Office Supplies 24 (2) Cash Short/Over Postage Expense 29 (2) Fuel Expense 33 (2) 1 (2) NOTE: The Petty Cash account always maintains a balance of $100 (in this example) even though the actual balance of cash in the fund may differ throughout the month. Credit Date 1-Mar Account Petty Cash Cash Debit 100 1-Apr Office Supplies Postage Expense Fuel Expense Cash/Short Over Cash ACG 2021 CHAPTER 6- EXERCISE Version 5.1 EXERCISE ONE: Bank Reconciliation Example Try completing a bank reconciliation for Cartwright Corp, using the information below. The reconciliation form is on the next page. The solution is on the page following the form. Try not to look at the solution first! Statewide Savings Bank Bank Statement 588-4448-45 October 31, 20XX Ending Balance - October 31st Checks and Debits Check No. Amount 563 48.00 564 720.00 565 405.00 566 85.00 568 67.00 Svc. Chrge-DM 15.00 NSF-DM 135.00 Account: Date: $ 10,410.00 Deposits and Credits Date Amount 15-Oct 4,000.00 22-Oct 2.650.00 27-Oct 1,400.00 A/R-CM 1.260.00 Following is a list of checks and deposits recorded on Cartwright's books: Checks Deposits Number Amount Date Amount 563 48.00 15-Oct 4,000.00 564 720.00 22-Oct 2,650.00 565 450.00 27-Oct 1,400.00 566 85.00 31-Oct 1.865.00 567 800.00 568 67.00 569 452.00 Other Information: 1) The cash balance showing on Cartwright's books as of October 31st is $9,868, 2) Check number #565 was correctly written and recorded by the bank for $405, however, it was recorded on Cartwright's books for $450. The check was to pay utilities expense. 3) The Debit Memo (DM) was for bank service charges. Cartwright records service charges to the Miscellaneious Expense account. 4) A check previously deposited by Cartwright was returned (DM) for NSF- $135 The check was from Steve Smith in payment of his account. 5) The Credit Memo (CM) was for the collection of an accounts receivable balance from one of Cartwright's customers. BANK RECONCILIATION Reg. 1 Bank Reconciliation October 31st BANK: Balance, October 31st Add: Less: Adjusted Balance, October 31st BOOKS: Balance, October 31st Add: Less: Adjusted Balance, October 31st Reg. 2 Journal Entries Accounts Debit Credit Date October 31 31 BANK RECONCILIATION- SOLUTION Reg. 1 Bank Reconciliation October 31st BANK: Balance, October 31st $10,410 Add: Deposits in transit 31-Oct Less: Outstanding checks: #567 #569 Adjusted Balance, October 31st (800) (452) $11,023 BOOKS: Balance, October 31st $9,868 Add: Correction of Error A/R collected 45 1,260 Less: (15) Bank service charge NSF Check (135) Adjusted Balance, October 31st $11,023 Reg. 2 Debit Credit Date October Journal Entries Accounts 31 Cash Utilities Expense 45 45 31 Miscellaneous Expense Cash 135 31 Accounts Receivable Cash 135 1,260 31 Cash Accounts Receivable 1,260 EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8.140. Outstanding checks amounted to $850, and deposits in transit were $2.500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as S510. 1) Prepare a bank reconciliation at June 30th. 2) Prepare any necessary journal entries. Req. 1 Bank Reconciliation June 30th BANK: Balance, June 30 Add. Less: Adjusted Balance, June 30 $ BOOKS: Balance, June 30 1 $ Add: Less: Adjusted Balance, June 30 Req. 2 Journal Entries Accounts Date Debit Credit June 30 30 ACCT 2021 - CHAPTER 6 - PETTY CASH Instructions: Use the T-accounts to complete the following petty cash problem. If you get stuck, review the examples in the text that describe an imprest basis system. Try not to look at the solution on the next page. Swenson Co. established a petty cash fund of $100 on March 1st. On March 31st the fund contained cash of $13 and receipts for the following: Postage Fuel Office Supplies Total S86 On April 1st, the petty cash fund was replinished. Record the following: 1) The entry to establish the fund on March 1st. 2) The entry to recognize the disbursements and replenish the petty cash fund to a $100 on April 1. Cash Petty Cash Office Supplies Postage Expense Fuel Expense Cash Short/Over NOTE: The Petty Cash account always maintains a balance of $100 (in this example) even though the actual balance of cash in the fund may differ throughout the month. Account Debit Credit Date 1-Mar 1-Apr ACCT 2021 - CHAPTER 6 - PETTY CASH Version 5.1 Instructions: Use the T-accounts to complete the following petty cash problem. If you get stuck, review the examples in the text that describe an imprest basis system. Try not to look at the solution on the next page. Swenson Co. established a petty cash fund of $100 on March 1st. On March 31st the fund contained cash of $13 and receipts for the following: Postage Fuel Office Supplies Total S86 On April 1st, the petty cash fund was replinished. Record the following: 1) The entry to establish the fund on March 1st. 2) The entry to recognize the disbursements and replenish the petty cash fund to a $100 on April 1. Cash 100 (1) 87 (2) Petty Cash 100 (1) Office Supplies 24 (2) Cash Short/Over Postage Expense 29 (2) Fuel Expense 33 (2) 1 (2) NOTE: The Petty Cash account always maintains a balance of $100 (in this example) even though the actual balance of cash in the fund may differ throughout the month. Credit Date 1-Mar Account Petty Cash Cash Debit 100 1-Apr Office Supplies Postage Expense Fuel Expense Cash/Short Over Cash