Chapter 8 Practice Test B - Petty Cash Transactions The Cat's Meow Company uses the perpetual system for accounting for merchandise inventory and had the following transactions during the month of October in petty cash. October 1 Established the petty cash fund for $600. October 29 Petty cash was counted and $275 remains in the fund. A check was written to replenish the fund to the original $600 amount. Receipts for the following expenditures were in the petty cash box: (a) Paid $200 cash for freight for merchandise inventory purchased. (b) Reimbursed employee $55 for postage stamps purchased for the company. (C) Paid $40 for computer paper for the company, C.O.D. (d) Reimbursed employee for business mileage $25. October 31 Due to security issues, the petty cash fund was reduced to $500. Record the journal entry to establish petty cash; record the journal entry to reimburse petty cash; and record the journal entry to decrease petty cash. Chapter 8 Practice Test D BANK RECONCILIATION BSP Company's general ledger shows a cash balance of $1,500 at October 31, 20XX. The bank statement for October 31, 20XX shows a balance of $1,000 for the company's account. (a) You also find September's outstanding checks #401 for $50 has cleared, but check #402 for $220 has not cleared the bank. October check #500 for $700 has also not cleared the bank. (b) A credit memorandum enclosed with the July bank statement indicates the bank collected $180 on a noninterest-bearing note. You had not been aware of this credit before receiving the bank statement. (c) Interest earned on the account was $5. This has not yet been recorded. (d) Bank service charges of $35 have not yet been recorded as no previous notification had yet been received. (e) A debit memorandum for $125 lists a NSF check. The check had been received from Mr. White, a customer. You have not yet recorded this check as a NSF check. (f) The October 31rst daily cash receipts of $1,400 were placed in the bank's night depository on that date, but do not appear on the October 31 bank statement. (g) October's check #433 was recorded on the company's books as $505, but the bank cashed the check for the correct amount of the check, which was $550 as written. The check was for postage. Prepare the October 20XX bank reconciliation for BSP Company. For extra credit, prepare the journal entries for the bank reconciliation. Chapter 8 Practice Test B - Petty Cash Transactions The Cat's Meow Company uses the perpetual system for accounting for merchandise inventory and had the following transactions during the month of October in petty cash. October 1 Established the petty cash fund for $600. October 29 Petty cash was counted and $275 remains in the fund. A check was written to replenish the fund to the original $600 amount. Receipts for the following expenditures were in the petty cash box: (a) Paid $200 cash for freight for merchandise inventory purchased. (b) Reimbursed employee $55 for postage stamps purchased for the company. (C) Paid $40 for computer paper for the company, C.O.D. (d) Reimbursed employee for business mileage $25. October 31 Due to security issues, the petty cash fund was reduced to $500. Record the journal entry to establish petty cash; record the journal entry to reimburse petty cash; and record the journal entry to decrease petty cash. Chapter 8 Practice Test D BANK RECONCILIATION BSP Company's general ledger shows a cash balance of $1,500 at October 31, 20XX. The bank statement for October 31, 20XX shows a balance of $1,000 for the company's account. (a) You also find September's outstanding checks #401 for $50 has cleared, but check #402 for $220 has not cleared the bank. October check #500 for $700 has also not cleared the bank. (b) A credit memorandum enclosed with the July bank statement indicates the bank collected $180 on a noninterest-bearing note. You had not been aware of this credit before receiving the bank statement. (c) Interest earned on the account was $5. This has not yet been recorded. (d) Bank service charges of $35 have not yet been recorded as no previous notification had yet been received. (e) A debit memorandum for $125 lists a NSF check. The check had been received from Mr. White, a customer. You have not yet recorded this check as a NSF check. (f) The October 31rst daily cash receipts of $1,400 were placed in the bank's night depository on that date, but do not appear on the October 31 bank statement. (g) October's check #433 was recorded on the company's books as $505, but the bank cashed the check for the correct amount of the check, which was $550 as written. The check was for postage. Prepare the October 20XX bank reconciliation for BSP Company. For extra credit, prepare the journal entries for the bank reconciliation