EcoMart establishes a $1,950 petty cash fund on May 2. On May 30, the fund shows $812 in cash along with receipts for the following expenditures: transportation-in, $156; postage expenses. $567, and miscellaneous expenses, $420. The petty cashier could not account for a $5 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory Prepare the (1) May 2 entry to establish the fund. (2) May 30 entry to reimburse the fund (Hint Credit Cash Over and Short for $5 and credit Cash for $1,138), and (3) June 1 entry to increase the fund to $2,280. Answer is not complete. General Journal No Date Debit Credit 1 May 02 Petty cash Cash 1,950 1,950 2 May 30 812 156 % 567 Transportation in Postage expense Miscellaneous expenses Transportation-in Cash over and short Cash OOO 4203 3 June 01 Petty cash Cash 2.280 2.280 The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31 a. On July 31, the company's Cash account has a $24.970 debit balance, but its July bank statement shows a $27702 cash balance. b. Check Number 3031 for $1,660, Check Number 3065 for $606, and Check Number 3069 for $2,428 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,240. d. The July bank statement shows the bank collected $10,000 cash on a note for Branch Branch had not recorded this event before receiving the statement e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $15 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $11,132 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. Required: 1. Prepare the bank reconciliation for this company as of July 31. BRANCH COMPANY Bank Reconciliation July 31 Book balance Add: Bank statement balance Add: Deposit of July 31 0 0 0 0 Deduct: Deduct: 0 0 Adjusted book balance 0 0 Adjusted bank balance $ $ Answer is not complete. No Transaction General Journal Debit Credit 1 a No journal entry required > 2 b. No Journal entry required 3 c Rent expense 10 Cash 10 4 d. Cash Collection expenso Notos receivable 5 0 Accounts receivable E. Shaw Cash 606 olo 606 6 Miscellaneous expenses Cash 103 10 7 9 No journal entry required
