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Mastery Problemi Internal Control and Cash Murdstone, Inc. You've just been hired as an accountant at Murdstone, Inc, a retailer of supplies for arts and

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Mastery Problemi Internal Control and Cash Murdstone, Inc. You've just been hired as an accountant at Murdstone, Inc, a retailer of supplies for arts and crafts. Since the previous accountant una position to the controller of Murdstone, Inc. has asked for your assistance in filing in some missing data for the company's January accounting recorts you to the responsible for training the company's new accounting intern Cash Short and Over The controller has completed the accounts for the cash and sales contos of January 30, but needs to attend an important conference in another ty Shetas requested that you prepare the account for the cash short and ever account as of January 10 also. You are told that the ance of the account of beginning of January, and that we company's sales are in cash. To simply this problem assumes that company has only one and account which die Ledger as "Cash Preview the following accounts, and then scroll down to complete the cath short and over Tacbount and answered westion that to Cash Balance 1/2 5,500 1/2 Establish Petty cash 500 1/5 2,800 1/12 6,255 3,270 1/30 4,450 Balance 21,775 1/23 Sales Balance 1/3 1/5 1/12 23 130 2,805 6.230 3,300 4,30 HW BILE PAYMENTS 500 SH_AND_HOW_TO_- Balance 1/1 1/5 112 1/23 1/30 Balance Cash 5,500 1/2 stabilish Putty cash 2.000 6.255 3,270 4.450 21,775 7.03 ALGO OT.01 07.02 07.05 EXCEL ALGO Sales Ba 1/1 05 112 123 2005 4.230 2.300 4.30 X.07.23.EXCEL ALGO 1/30 WP.07.01. ALGO tegenover Tool Cash Short and Ove 1/2 My w Review the preceding accounts, and then complete the cath short and over account and associated question that follows it. Cash Short and Over Balance 1/1 Balance Accounting and What will happen to the ending balance in the cash short and over account at the end of the counting period Petty Cash Murdstone, Inc. issued a check on January 2 to establish a hund of $500. Onuary 31, that of thin the cash and the com would like to cut check to the fund, based on the wings of petty cash Amount on Account Receipt Office Supplies $32 Miscenos ministrative Expense 23 The company policy is to recording funds in the short antara The news reportery to reconhece Date Description De Crede ca 55 C 55 The comparw's policy is to record missing funds in the cash short and over account The new internas prepared a proposed journal entry to record the replenishing of the petty cash fund: Date Description Debit Credit Jan 31 Petty Cath 55 I Cash 55 Prepare for your discussion with the intern by Journaling the correct entry for the regiment of the pretty cash fond, in amount o deset let eave it blank Tan > Bank Reconciation The compacting internas pred the end of January from the tres. Merewing the one who then them Murden, in Bank Reconciliati January 31, 2015 Coding bank statement 2,5 Add Day bedende 124 Me Bank service charge (250.00) Error in recording Check No. 123 (9,000.00) Total deductions (32,725,40) Adjusted balance $34,10123 You assist the intern to check source documents, and find the most of the dollar amounts are currect, however two or amounts are correct, Alarmwag the following table, scroll down for the next step in helping the incom Correct in 11 No, Intern's Corrected Item Reconciliation? Amount Cash balance according to bank statement Yes Deposit in transit on January 31 Yes Outstanding Check No 124 Yes Outstanding Check No. 125 No $45.00 Outstanding Check No. 129 Yes Cash balance according to Murde, Inc ves Check returned because of infident tunds Yes Note and interest collected by ban 5.00 service charge Mustone error in recording Check No 123 a 512.035.6 the Yes than the correct amount of $21.495.00 Aer container to each for other errore by comparing the recipe bank record you compute the correctadajte balance Hound to decals Correde baneam Cho My Work Sud

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