Question
Jason Kuhns check stubs indicated a balance of $4,565.12 for Kuhns Wilderness Outfitters on March 31. This included a record of a deposit of $926.10
Jason Kuhns check stubs indicated a balance of $4,565.12 for Kuhns Wilderness Outfitters on March 31. This included a record of a deposit of $926.10 mailed to the bank on March 30, but not credited to Kuhns account until April 1. In addition, the following checks were outstanding on March 31: No. 462 $524.26 No. 465 $213.41 No. 473 $543.58 No. 476 $351.38 No. 477 $197.45 The Bank statement showed a balance of $5,419 as of March 31. The bank statement included a service charge of $4.10 with the date of March 29. In matching the canceled checks and record of deposits with the stubs, it was discovered that Check No. 456, a payment on account to Office Supplies, Inc., for $39 was erroneously recorded on that stub as $93. This caused the bank balance on that stub and those following to be $54 too small. It was also discovered that an ATM withdrawal of $100 for personal use was not recorded on the books. Kuhn maintains a $200 petty cash fund. His petty cash payments record showed the following totals at the end of March of the current year: Automobile expense $32.40 Postage expense 27.50 Charitable contributions expense 35.00 Telephone expense 6.20 Travel and entertainment expense 38.60 Miscellaneous expense 17.75 Jason Kuhn, drawing 40.00 Total $197.45 This left a balance of $2.55 in petty cash fund, and the fund was replenished. REQUIRED: 1. Prepare a bank reconciliation for Jason Kuhn as of March 31, 20--. 2. Journalize the entries that should be made by Kuhn on his books as of March 31, 20--, (a) as a result of the bank reconciliation and (b) to replenish the petty cash fund. 3. Show proof that, after these entries, the total of the cash petty cash account balances equals $4,715.02.
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