Problem 7-12 Bill Jovi is reviewing the cash accounting for Teal, Inc., a local mailing service. Jovi's review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2017. He has collected the following information from Teal's bookkeeper for this task. Petty Cash 1. The petty cash fund was established on May 10, 2017, in the amount of $285.00 2. Expenditures from the fund by the custodian as of May 31, 2017, were evidenced by approved receipts for the following: Postage expense Mailing labels and other supplies 1..U. from employees Shipping charges (to customer) Newspaper advertising Miscellaneous expense $37.62 74.10 34.20 65.49 25.99 17.50 On May 31, 2017, the petty cash fund was replenished and increased to $342.00; currency and coin in the fund at that time totaled $30.10 THIRD NATIONAL BANK BANK STATEMENT Disbursements Receipts Balance Balance, May 1, 2017 Deposits Note payment direct from customer (interest of $34.20) Checks cleared during May Bank service charges Balance, May 31, 2017 $9,996.66 $31,920.00 1,060.20 $35,511.00 30.78 7,435.08 Balance, May 1, 2017 Deposits during May 2017 Checks written during May 2017 $10,089.00 5,340.00 36,291.90) Deposits in transit are determined to be $3,420.00, and checks outstanding at May 31 total $969.00. Cash on hand (besides petty cash) at May 31, 2017, is $280.44 Prepare the journal entries to record the transactions related to the petty cash fund for May. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. Prepare the journal entries to record the transactions related to the petty cash fund for May. (Enter answers to 2 decimal places,e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To establish petty cash fund) 2. (To record expenditures from the fund) 3. (To replenish petty cash fund) Prepare a bank reconciliation dated May 31, 2017, proceeding to a correct cash balance, and prepare the journal entries necessary to make the books correct and complete. (Enter answers to 2 decimal places,e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. TEAL, INC Bank May 31, 2017 No. Account Titles and Explanation Debit Credit 1. (To record the collection of the note) 2. To record bank service charges) To record the collection of the note) 2. To record bank service charges) LINK TO TEXT What amount of cash should be reported in the May 31, 2017, balance sheet? (Enter answers to 2 decimal places, e.g. 125.62.) Cash to be reported
