Cottage Co. deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on December 31, its Cash account shows a debit balance of $36,606. The companys bank statement as of December 31 shows an ending cash balance of $31,842. The following information was also available. Outstanding checks as of December 31 total $4,522. Included with the bank statement was a debit memo in the amount of $70 for service charges. Check No. 2519, listed with the canceled checks, was correctly drawn for $805 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $895. The December 31 cash receipts of $6,850 were placed in the banks night depository after banking hours and were not recorded on the December 31 bank statement. The bank deducted $2,456 for an NSF check from a customer deposited on December 10. Required: Prepare the bank reconciliation as of December 31.

2. On September 1, a company established a petty cash fund of $200. On September 10, the petty cash fund was replenished when there was $32 remaining and there were petty cash receipts for supplies, $54, and postage, $108. On September 15, the petty cash fund was increased to $250. Required: Prepare the journal entries, if any, required on September 1, September 10, and September 15. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

3 Inventory shrinkage is the difference between inventory in the warehouse and inventory counted. True or False True False