Bill Jovi is reviewing the cash accounting for Bonita, Inc , a local mailing service Jovis review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2020 He has collected the following information from Bonitas bookkeeper for this task Petty Cash 1 The petty cash fund was established on May 10, 2020, in the amount of $272 50 2 Expenditures from the fund by the custodian as of May 31, 2020, were evidenced by approved receipts for the following Postage expense $35 97 Mailing labels and other supplies 70 85 I O U from employees 32 70 Shipping charges (to customer) 62 62 Newspaper advertising 24 85 Miscellaneous expense 16 73 On May 31, 2020, the petty cash fund was replenished and increased to $327 00 currency and coin in the fund at that time totaled $28 78 Bank Reconciliation THIRD NATIONAL BANK BANK STATEMENT Disbursements Receipts Balance Balance, May 1, 2020 $9,558 21 Deposits $30,520 00 Note payment direct from customer (interest of $32 70) 1,013 70 Checks cleared during May $33,953 50 Bank service charges 29 43 Balance, May 31, 2020 7,108 98 Bonitas Cash Account Balance, May 1, 2020 $ 9,646 50 Deposits during May 2020 33,790 00 Checks written during May 2020 (34,700 15 ) Deposits in transit are determined to be $3,270 00, and checks outstanding at May 31 total $926 50 Cash on hand (besides petty cash) at May 31, 2020, is $268 14 Part 1 Prepare the journal entries to record the transactions related to the petty cash fund for May (Enter answers to 2 decimal places, e g 125 62 If no entry is required, select No Entry for the account titles and enter O for the amounts Credit account titles are automatically indented when the amount is entered Do not indent manually ) No Account Titles and Explanation Debit Credit 1 (To establish petty cash fund) 2 (To record expenditures from the fund) 3 (To replenish petty cash fund) Part 2 Prepare a bank reconciliation dated May 31, 2020, proceeding to a correct cash balance, and prepare the journal entries necessary to make the books correct and complete (Enter answers to 2 decimal places, e g 125 62 If no entry is required, select No Entry for the account titles and enter O for the amounts Credit account titles are automatically indented when the amount is entered Do not indent manually ) BONITA, INC Bank reconciliation May 31, 2020 $

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 18, 2024

Bill Jovi is reviewing the cash accounting for Bonita, Inc., a local mailing service. Jovis review will focus on the petty cash account and the

Bill Jovi is reviewing the cash accounting for Bonita, Inc., a local mailing service. Jovis review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2020. He has collected the following information from Bonitas bookkeeper for this task. Petty Cash 1. The petty cash fund was established on May 10, 2020, in the amount of $272.50. 2. Expenditures from the fund by the custodian as of May 31, 2020, were evidenced by approved receipts for the following:

Postage expense		$35.97
Mailing labels and other supplies		70.85
I.O.U. from employees		32.70
Shipping charges (to customer)		62.62
Newspaper advertising		24.85
Miscellaneous expense		16.73

On May 31, 2020, the petty cash fund was replenished and increased to $327.00; currency and coin in the fund at that time totaled $28.78. Bank Reconciliation

THIRD NATIONAL BANK BANK STATEMENT
	Disbursements	Receipts	Balance
Balance, May 1, 2020			$9,558.21
Deposits		$30,520.00
Note payment direct from customer (interest of $32.70)		1,013.70
Checks cleared during May	$33,953.50
Bank service charges	29.43
Balance, May 31, 2020			7,108.98

Bonitas Cash Account
Balance, May 1, 2020	$ 9,646.50
Deposits during May 2020	33,790.00
Checks written during May 2020	(34,700.15	)

Deposits in transit are determined to be $3,270.00, and checks outstanding at May 31 total $926.50. Cash on hand (besides petty cash) at May 31, 2020, is $268.14.

image text in transcribed

Part 1 Prepare the journal entries to record the transactions related to the petty cash fund for May. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To establish petty cash fund) 2. (To record expenditures from the fund) 3. (To replenish petty cash fund) Part 2 Prepare a bank reconciliation dated May 31, 2020, proceeding to a correct cash balance, and prepare the journal entries necessary to make the books correct and complete. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) BONITA, INC. Bank reconciliation May 31, 2020 $