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as ESPN Typing Lessons Be... Michigan State Uni... Vet Tix GVSU Admissions Houses is Howell, H... MyVeteransUnited Calculator Mastery Problem: Internal Control and Cash Murdstone, inc. Chart of Accounts Cash Short and Over Petty Cash II Murdstone, Inc You've just been hired as an accountant at Murdstone, Inc., a retailer of supplies for arts and crafts. Since the previous accountant left his position suddenly, the controller of Murdstone, Inc. has asked for your assistance in filling in some missing data for the company's January accounting records. You'll also be responsible for training the company's new accounting intern Chart of Accounts CHART OF ACCOUNTS Murdstone, Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Potty Cash 610 Interest Revenue 112 Accounts Receivable 115 Inventory EXPENSES a 8191 9/11/2 M3 Critical Thinking Problem Calculator ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable EXPENSES 510 Cost of Goods Sold 115 Inventory 116 Store Supplies 117 Office Supplies 118 Prepaid Insurance 516 Cash Short and Over 120 Land 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 125 Office Equipment hy 126 Accumulated Depreciation Office Equipment 131 Notes Receivable 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Bank Service Charge LIABILITIES 536 Repairs Expense 537 Selling Expenses 210 Accounts Payable 211 Salaries Payable 213 Interest Payable 215 Notes Payable 538 Store Supplies Expense 539 Miscellaneous Administrative Expense Type here to search o a M3 Critical Thinking Problem Calculator 211 Salaries Payable 213 Interest Payable 215 Notes Payable 537 Selling Expenses 538 Store Supplies Expense 539 Miscellaneous Administrative Expense 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Cash Short and Over The controller has completed the accounts for the cash and Sales accounts as of January 30, but needs to attend an important conference in another city. She has requested that you prepare the T account for the Cash Short and over account as of January 30 also. You are told that the balance of the account is zero as of the beginning of January, and that all the company's sales are in cash. To simplity, this problem assumes that a company has only one bank account, which is identified in the Ledger as 'Cash Review the following accounts and then scroll down to complete the Cash Short and Over Taccount and answer the associated question that follows it Type here to search ORI a M3 Critical Thinking Problem Calculator Review the following accounts, and then scroll down to complete the Cash Short and Over Taccount and answer the associated question that follows it. Cash Balance 1/1 5,500 112 Establish Petty Cash 500 1/5 2,800 1/12 6,305 1/23 3.270 1/30 4,450 Balance 21,825 Balance 1/1 0 1/5 2,805 1/12 6,295 1/23 3,320 1/30 4.400 Balance 16.820 Type here to search o RI Calculator Review the preceding Taccounts, and then complete the Cash Short and Over T account and associated question that follows it Cash Short and Over Balance 1/1 0 1/30 $10 1/5 $5 1/12 $50 1/23 $50 Balance $5 What will happen to the ending balance in the Cash Short and Over account at the end of the accounting period? The discrepancy must be repornohubn the company website. O it will be a miscellaneous expense on the income statement The discrepancy must be reported to the Securities and Exchange Commission It will be added to the Other Income section of the income statement Petty Cash Type here to search o . Critical Thinking Problem Calculator Petty Cash Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the petty cash fund is $439. The company woy like to issue a check to replenish the fund, based on the following summary of petty cash receipts: Amount on Receipt Account Office Supplies Miscellaneous Administrative Expense $32.00 $23.00 The company's policy is to record any missing funds in the Cash Short and Over account. The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund PAGE 17 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF CREDIT ASSETS LIABILITIES EQUITY lan 31 Petty Cash DEBIT 55.00 Cashi 55.00 Type here to search a M3 Critical Thinking Problem Calculator Prepare for your discussion with the intern by journalizing the correct entry for the replenishment of the petty cash fund. Refer to the Chart of Accounts for exact wording account is PAGE 17 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LUITIES EQUITY 2 Bank Reconciliation The company's accounting intern has prepared the end of January bank reconciliation from the bank statement, and is worried because the Adjusted Balance amounts do not agree. After reviewing the bank reconciliation, scroll down for the next steps in helping the intern Murdstone Inc Type here to search O Murdstone, Inc Bank Reconciliation January 31, 2017 $23,557.98 $12.125.25 4 1 Cash balance according to bank statement 2 Adjustments: 3 Deposit in transit on January 31 Outstanding Check No. 124 Outstanding Check No. 125 Outstanding Check No. 129 Total adjustments Adjusted balance 5 (62.00) (57.00) (1.250.00) 6 7 10.756.25 $34.314.23 9 $51.560.88 12 $15.250.75 10 Cash balance according to Murdstone, Inc. 11 Adjustments: Note and interest collected by bank Check returned because of insufficient funds Bank service charge 15 Error in recording Check No.123 11 14 (23.475.40) (400.00) 19.000.00) Type here to search O BE ritical Thinking Problem Calculator 16 Total adjustments (17,624.65) 17 Adjusted balance $33,936.23 You assist the intern to check source documents, and find that most of the dollar amounts are correct, however, two dollar amounts are incorrect. After reviewing the following table, scroll down for the next steps in helping the intern. Correct in Intern's Reconciliation? If "No," Corrected Amount Yes Item Cash balance according to bank statement Deposit in transit on January 31 Outstanding Check No. 124 Yes Yes No $75.00 Outstanding Check No. 125 Outstanding Check No 129 Yes Yes Yes Yes Cash balance according to Murdstone, Inc. Check returned because of insufficient funds Note and interest collected by bank Bank service charge Murdstone error in recording Check No 123 as $12,435.00 rather than the correct amount of $21.435.00 NO $40.00 Yes Type here to search ORA a Trem Correct in intern's Reconciliation UNO, corrected Amount Cash balance according to bank statement Yes Yes Yes No $75.00 Yes Yes Deposit in transit on January 31 Outstanding Check No. 124 Outstanding Check No. 125 Outstanding Check No. 129 Cash balance according to Murdstone, Inc. Check returned because of insufficient funds Note and interest collected by bank Bank service charge Murdstone error in recording Check No. 123 as $12,435.00 rather than the correct amount of $21,435.00 Yes Yes No $40.00 Yes After asking the intern to search for other errors by comparing her reconciliation to prior bank reconciliations prepared by the former accountant you work together to compute the corrected Adjusted Balance Enter your answer with two decimal places Corrected Adjusted Balance amount Type here to search ORE a as ESPN Typing Lessons Be... Michigan State Uni... Vet Tix GVSU Admissions Houses is Howell, H... MyVeteransUnited Calculator Mastery Problem: Internal Control and Cash Murdstone, inc. Chart of Accounts Cash Short and Over Petty Cash II Murdstone, Inc You've just been hired as an accountant at Murdstone, Inc., a retailer of supplies for arts and crafts. Since the previous accountant left his position suddenly, the controller of Murdstone, Inc. has asked for your assistance in filling in some missing data for the company's January accounting records. You'll also be responsible for training the company's new accounting intern Chart of Accounts CHART OF ACCOUNTS Murdstone, Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Potty Cash 610 Interest Revenue 112 Accounts Receivable 115 Inventory EXPENSES a 8191 9/11/2 M3 Critical Thinking Problem Calculator ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable EXPENSES 510 Cost of Goods Sold 115 Inventory 116 Store Supplies 117 Office Supplies 118 Prepaid Insurance 516 Cash Short and Over 120 Land 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 125 Office Equipment hy 126 Accumulated Depreciation Office Equipment 131 Notes Receivable 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Bank Service Charge LIABILITIES 536 Repairs Expense 537 Selling Expenses 210 Accounts Payable 211 Salaries Payable 213 Interest Payable 215 Notes Payable 538 Store Supplies Expense 539 Miscellaneous Administrative Expense Type here to search o a M3 Critical Thinking Problem Calculator 211 Salaries Payable 213 Interest Payable 215 Notes Payable 537 Selling Expenses 538 Store Supplies Expense 539 Miscellaneous Administrative Expense 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Cash Short and Over The controller has completed the accounts for the cash and Sales accounts as of January 30, but needs to attend an important conference in another city. She has requested that you prepare the T account for the Cash Short and over account as of January 30 also. You are told that the balance of the account is zero as of the beginning of January, and that all the company's sales are in cash. To simplity, this problem assumes that a company has only one bank account, which is identified in the Ledger as 'Cash Review the following accounts and then scroll down to complete the Cash Short and Over Taccount and answer the associated question that follows it Type here to search ORI a M3 Critical Thinking Problem Calculator Review the following accounts, and then scroll down to complete the Cash Short and Over Taccount and answer the associated question that follows it. Cash Balance 1/1 5,500 112 Establish Petty Cash 500 1/5 2,800 1/12 6,305 1/23 3.270 1/30 4,450 Balance 21,825 Balance 1/1 0 1/5 2,805 1/12 6,295 1/23 3,320 1/30 4.400 Balance 16.820 Type here to search o RI Calculator Review the preceding Taccounts, and then complete the Cash Short and Over T account and associated question that follows it Cash Short and Over Balance 1/1 0 1/30 $10 1/5 $5 1/12 $50 1/23 $50 Balance $5 What will happen to the ending balance in the Cash Short and Over account at the end of the accounting period? The discrepancy must be repornohubn the company website. O it will be a miscellaneous expense on the income statement The discrepancy must be reported to the Securities and Exchange Commission It will be added to the Other Income section of the income statement Petty Cash Type here to search o . Critical Thinking Problem Calculator Petty Cash Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the petty cash fund is $439. The company woy like to issue a check to replenish the fund, based on the following summary of petty cash receipts: Amount on Receipt Account Office Supplies Miscellaneous Administrative Expense $32.00 $23.00 The company's policy is to record any missing funds in the Cash Short and Over account. The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund PAGE 17 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF CREDIT ASSETS LIABILITIES EQUITY lan 31 Petty Cash DEBIT 55.00 Cashi 55.00 Type here to search a M3 Critical Thinking Problem Calculator Prepare for your discussion with the intern by journalizing the correct entry for the replenishment of the petty cash fund. Refer to the Chart of Accounts for exact wording account is PAGE 17 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LUITIES EQUITY 2 Bank Reconciliation The company's accounting intern has prepared the end of January bank reconciliation from the bank statement, and is worried because the Adjusted Balance amounts do not agree. After reviewing the bank reconciliation, scroll down for the next steps in helping the intern Murdstone Inc Type here to search O Murdstone, Inc Bank Reconciliation January 31, 2017 $23,557.98 $12.125.25 4 1 Cash balance according to bank statement 2 Adjustments: 3 Deposit in transit on January 31 Outstanding Check No. 124 Outstanding Check No. 125 Outstanding Check No. 129 Total adjustments Adjusted balance 5 (62.00) (57.00) (1.250.00) 6 7 10.756.25 $34.314.23 9 $51.560.88 12 $15.250.75 10 Cash balance according to Murdstone, Inc. 11 Adjustments: Note and interest collected by bank Check returned because of insufficient funds Bank service charge 15 Error in recording Check No.123 11 14 (23.475.40) (400.00) 19.000.00) Type here to search O BE ritical Thinking Problem Calculator 16 Total adjustments (17,624.65) 17 Adjusted balance $33,936.23 You assist the intern to check source documents, and find that most of the dollar amounts are correct, however, two dollar amounts are incorrect. After reviewing the following table, scroll down for the next steps in helping the intern. Correct in Intern's Reconciliation? If "No," Corrected Amount Yes Item Cash balance according to bank statement Deposit in transit on January 31 Outstanding Check No. 124 Yes Yes No $75.00 Outstanding Check No. 125 Outstanding Check No 129 Yes Yes Yes Yes Cash balance according to Murdstone, Inc. Check returned because of insufficient funds Note and interest collected by bank Bank service charge Murdstone error in recording Check No 123 as $12,435.00 rather than the correct amount of $21.435.00 NO $40.00 Yes Type here to search ORA a Trem Correct in intern's Reconciliation UNO, corrected Amount Cash balance according to bank statement Yes Yes Yes No $75.00 Yes Yes Deposit in transit on January 31 Outstanding Check No. 124 Outstanding Check No. 125 Outstanding Check No. 129 Cash balance according to Murdstone, Inc. Check returned because of insufficient funds Note and interest collected by bank Bank service charge Murdstone error in recording Check No. 123 as $12,435.00 rather than the correct amount of $21,435.00 Yes Yes No $40.00 Yes After asking the intern to search for other errors by comparing her reconciliation to prior bank reconciliations prepared by the former accountant you work together to compute the corrected Adjusted Balance Enter your answer with two decimal places Corrected Adjusted Balance amount Type here to search ORE a