Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Journalize the petty cash transactions. Post to the Petty Cash account. What internal control features exist in a petty cash fund? On May 31, 2014,
Journalize the petty cash transactions. Post to the Petty Cash account. What internal control features exist in a petty cash fund? On May 31, 2014, Terrell Company had a cash balance per books of $6, 781. 50. The bank statement from Home Town State Bank on that date showed a balance of $6, 804. 60. A comparison of the statement with the cash account revealed the following facts. The statement included a debit memo of $40 for the printing of additional company checks. Cash sales of $836. 15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886. 15. The bank credited Terrell Company for the correct amount. Outstanding checks at May 31 totaled $276. 25. Deposits in transit were $1, 916. 15. On May 18, the company issued check No. 1181 for $685 to Barry Dietz on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Terrell Company for $658. A $3, 000 note receivable was collected by the bank for Terrell Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note. Included with the cancelled checks was a check issued by Bridges Company to Jon Newton for $600 that was incorrectly charged to Terrell Company by the bank. On May 31, the bank statement showed an NSF charge of $680 for a check issued by Sandy Grifton, a customer, to Terrell Company on account. Instructions Prepare the bank reconciliation at May 31, 2014. Prepare the necessary adjusting entries for Terrell Company at May 31, 2014. The bank portion of the bank reconciliation for Rintala Company at November 30, 2014, was as follows. Rintala Company Bank Reconciliation November 30, 2014 Cash balance per bank $14, 367. 90
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started