Bookmark question for later

Cash is classified as a long$-$term asset of the business because it is to be use for a long period of time.

Bookmark question for later

Petty Cash is used for small receipts of cash that the business needs to take care of expenses.

Bookmark question for later

To safeguard assets, businesses have two kinds of internal controls: internal accounting controls and internal administrative controls.

Bookmark question for later

To record the establishment of Petty Cash, the entry will include a debit to Cash.

Bookmark question for later

The bank service charges are the companies$$ current asset accounts.

Bookmark question for later

To reconcile the company$$s bank statement, the General Journal is used to match the figures with the bank statement balance.

Bookmark question for later

If the bank made a mistake in charging a check of Customer A$$s account against Customer B$$s account, Company B must inform the bank of this error and does not need to record an adjusting entry.

Bookmark question for later

The NSF check represents non$-$sufficient funds of the company$$s customer$$s account.

Bookmark question for later

The entry required to adjust the outstanding checks is a credit to the Cash account.

Bookmark question for later

To adjust the NSF checks that came back, the entry will include a debit to Cash for the amount of the NSF check.

Bookmark question for later

Use Table $1$ below to answer questions $1114.$

Table $1$: A company started Petty Cash with $$200\mathrm{.}00$ on Jan. $1$ of the current year. The following receipts were found: Gas receipts for $$50\mathrm{.}00$; Pizza receipt used for the office pot luck for $$22\mathrm{.}00$; Post Office receipt for $$41\mathrm{.}00$; Misc. receipts for $$30\mathrm{.}00$; and an IOU from the owner for $$25\mathrm{.}00.$ On Jan. $25,$ the custodian submitted the receipts for replenishment. The cash count in the petty cash box is composed of $1$ ten dollar bills, and $3$ five dollar bills, and $5$ one dollar bills.

From the information on Table $1,$ the journal entry to record the establishment of Petty Cash on Jan. $1$ will include:

a$.$ Debit to Cash for $$200\mathrm{.}00$

b$.$ Credit to Cash for $$200\mathrm{.}00$

c$.$ Debit to Petty Cash for $$50\mathrm{.}00$

d$.$ Credit to Automobile Expense for $$50\mathrm{.}00$

e$.$ Debit to Owner$$s Capital for $$25\mathrm{.}00$

Bookmark question for later

The journal entry to record the petty cash count in the petty cash box will include:

a$.$ Debit to Cash for $$30\mathrm{.}00$

b$.$ Credit to Cash for $$30\mathrm{.}00$

c$.$ Debit to Petty Cash for $$32\mathrm{.}00$

d$.$ Credit to Petty Cash for $$32\mathrm{.}00$

e$.$ None of the above. There is no entry.

Bookmark question for later

The entry to replenish Petty Cash on Jan. $25$ will include:

a$.$ Debit to Petty Cash for $$200\mathrm{.}00$

b$.$ Credit to Petty Cash for $$168\mathrm{.}00$

c$.$ Debit to Cash Short and Over for $$2\mathrm{.}00$

d$.$ Debit to Cash for $$168\mathrm{.}00$

e$.$ Credit to Cash Short and Over for $$2\mathrm{.}00$

Bookmark question for later

A deposit of $$500\mathrm{.}00$ was erroneously recorded in the books as $$50\mathrm{.}00.$ The difference of $$450\mathrm{.}00$ should be treated as:

a$.$ A deduction from the bank statement balance

b$.$ A deduction from the book general ledger balance

c$.$ An addition to the bank statement balance

d$.$ An addition to the book general ledger balance

e$.$ None of the above.

Bookmark question for later

Use Table $2$ below to answer questions $1516.$

Table $2$: An NSF check came back with the bank statement for $$380\mathrm{.}00.$ The check came from Customer A for services rendered.

Using the information from Table $2,$ the entry to record this NSF check will include:

a$.$ Debit to Cash for $$380\mathrm{.}00$

b$.$ Credit to Petty Cash for $$380\mathrm{.}00$

c$.$ Debit to Petty Cash for $$380\mathrm{.}00$

d$.$ Credit to Cash for $$380\mathrm{.}00$

e$.$ Debit to Accounts Payable for $$380\mathrm{.}00$

Bookmark question for later

Using the information from Table $2,$ the bank reconciliation report for the $$380\mathrm{.}00$ will be shown as:

a$.$ A deduction from the book general ledger balance

b$.$ An addition to the book general ledger balance

c$.$ A deduction from the bank statement balance

d$.$ An addition to the bank statement balance

e$.$ None of the above

Bookmark question for later

A check for $$750\mathrm{.}00$ was erroneously recorded as $$75\mathrm{.}00.$ The bank reconciliation report will treat this item as:

a$.$ A deduction of $$675$ from the bank statement balance

b$.$ An addition of $$675$ to the bank statement balance

c$.$ A deduction of $$750$ from the book general ledger balance

d$.$ An addition of $$75\mathrm{.}00$ to the book general ledger balance

e$.$ A deduction of $$675$ from the book general ledger balance

Bookmark question for later

A deposit of $$90\mathrm{.}00$ was erroneously recorded as $$900\mathrm{.}00.$ The bank reconciliation report will show this item as:

a$.$ An addition to the bank statement balance for $$900\mathrm{.}00$

b$.$ A deduction from the bank statement balance for $$810\mathrm{.}00$

c$.$ An addition to the book general ledger balance for $$90\mathrm{.}00$

d$.$ A deduction from the book general ledger balance for $$90\mathrm{.}00$

e$.$ A deduction from the book general ledger balance for $$810\mathrm{.}00$

Bookmark question for later

Use Table $3$ below t