Question
Bill Jovi is reviewing the cash accounting for Windsor, Inc., a local mailing service. Jovis review will focus on the petty cash account and the
Bill Jovi is reviewing the cash accounting for Windsor, Inc., a local mailing service. Jovis review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2017. He has collected the following information from Windsors bookkeeper for this task. Petty Cash 1. The petty cash fund was established on May 10, 2017, in the amount of $260.00. 2. Expenditures from the fund by the custodian as of May 31, 2017, were evidenced by approved receipts for the following: Postage expense $34.32 Mailing labels and other supplies 67.60 I.O.U. from employees 31.20 Shipping charges (to customer) 59.75 Newspaper advertising 23.71 Miscellaneous expense 15.96 On May 31, 2017, the petty cash fund was replenished and increased to $312.00; currency and coin in the fund at that time totaled $27.46. Bank Reconciliation THIRD NATIONAL BANK BANK STATEMENT Disbursements Receipts Balance Balance, May 1, 2017 $9,119.76 Deposits $29,120.00 Note payment direct from customer (interest of $31.20) 967.20 Checks cleared during May $32,396.00 Bank service charges 28.08 Balance, May 31, 2017 6,782.88 Windsors Cash Account Balance, May 1, 2017 $ 9,204.00 Deposits during May 2017 32,240.00 Checks written during May 2017 (33,108.40 ) Deposits in transit are determined to be $3,120.00, and checks outstanding at May 31 total $884.00. Cash on hand (besides petty cash) at May 31, 2017, is $255.84.
Prepare a bank reconciliation dated May 31, 2017, 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.) WINDSOR, INC. Bank reconciliation May 31, 2017 $ $ -- $ $ No. Account Titles and Explanation Debit Credit 1. (To record the collection of the note) 2. (To record bank service charges) What amount of cash should be reported in the May 31, 2017, balance sheet? (Enter answers to 2 decimal places, e.g. 125.62.) Cash to be reported Click if you would like to Show Work for this question: Open Show Work
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