PR 8-2A

Picasso Restoration Company completed the following selected transactions during May 2014: May 1. Established a petty cash fund of $800. 10. The cash sales for the day, according to the cash register records, totaled $3,345. The actual cash received from cash sales was $3,358. 31. Petty cash on hand was $275. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: 394 395 May 3. Store supplies, $290. 7. Express charges on merchandise sold, $70 (Delivery Expense). 9. Office supplies, $12. 13. Office supplies, $25. 19. Postage stamps, $18 (Office Supplies). 21. Repair to office file cabinet lock, $20 (Miscellaneous Administrative Expense). May 22. Postage due on special delivery letter, $16 (Miscellaneous Administrative Expense). 24. Express charges on merchandise sold, $40 (Delivery Expense). 30. Office supplies, $10. May 31. The cash sales for the day, according to the cash register records, totaled $6,155. The actual cash received from cash sales was $6,125. 31. Decreased the petty cash fund by $50.

PR 8-3A

The cash account for Fit Bike Co. at August 1, 2014, indicated a balance of $12,190. During August, the total cash deposited was $28,100 and checks written totaled $33,010. The bank statement indicated a balance of $12,550 on August 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a.Checks outstanding totaled $7,440.

b.A deposit of $2,880, representing receipts of August 31, had been made too late to appear on the bank statement.

c.The bank had collected for Fit Bike Co. $2,080 on a note left for collection.

The face of the note was $2,000. d.A check for $580 returned with the statement had been incorrectly charged by the bank as $850. e.A check for $640 returned with the statement had been recorded by Fit Bike Co. as $460. The check was for the payment of an obligation to Brown Co. on account. f.Bank service charges for August amounted to $20. g.A check for $900 from Murdock Co. was returned by the bank due to insufficient funds. Instructions 1.Prepare a bank reconciliation as of August 31. 2.Journalize the necessary entries. The accounts have not been closed. 3.If a balance sheet were prepared for Fit Bike Co. on August 31, 2014, what amount should be reported as cash?