1. Titan Coolers makes monthly payments for its utilities. To decrease errors, Titan Coolers authorizes an electronic transfer from its bank account to the utility companys bank account. Which type of cash payment system is the company using?
2. Determine if each item will appear on the bank statement as a debit or credit memo. Also indicate if the item will increase or decrease the balance of the companys bank account.
   1. Interest earned on the bank account
   2. Monthly service charge
   3. Correction of a deposit for $410, when the bank originally recorded a deposit of

$310

3. RPL Co.s accountant is preparing the bank reconciliation for the month. The following are shown on the document. Will each be shown as a debit or credit memo to the account? By how much will each item cause the balance of RPL Co.s bank account to increase or decrease?
   1. Payment to Office Supply Co. for $550
   2. Checks from customers amounting to $642 marked NSF
   3. Original payment to a supplier, EC, recorded as $620, corrected to $260
4. Moes Mowers received its bank statement for the month of July. The bank statement included the items below. Determine if each item will be a credit or debit memo and if each causes the bank account balance to increase or decrease.
   1. Payments from various customers made by EFT
   2. Proceeds for the companys construction loan
   3. Service charges for the processing of the loan

5. Tiger Honeys cash ledger shows a balance of $2,870.20, which includes a deposit in transit of $890.60 and outstanding checks totaling $500.75. Prepare a bank reconciliation for the company with the given bank statement for the month of August. Record the journal entries to update the companys cash ledger to the adjusted balance. All electronic transfers received should be applied to accounts receivable, while electronic transfers sent should be applied to the companys outstanding accounts payable balance with Busy Bees.

Charles K. Bank of the Carolinas			Page 1
			Account number 215350
			From 7/31/20Y5 to 8/31/20Y5
			Balance 7/31 $2,397.72
Date		Amount	Balance
8/2	Deposit	320.25	2,717.97
8/5	NSFDan Snead	(46.49)	2,671.48
8/8	ACH	300.15	2,971.63
8/12	Check No. 545	(37.50)	2,934.13
8/15	Notes Receivable	300.00	3,234.13
8/20	ACH	(312.50)	2,921.63
8/24	Check No. 546	(200.12)	2,721.51
8/28	NSFJill Jackson	(124.50)	2,597.01
8/31	Service Charge	(15.00)	2,582.01
8/31	ACH	350.00	2,932.01
			Balance 8/31 $2,932.01

6. On March 1, 20Y5, Tigers Honey creates a $750 petty cash fund to pay for small expenses. At the end of the month, the petty cash receipts included payments for: office supplies, $225; plumbing repair (record as a maintenance expense), $190; and shipping expenses, $60. The petty cash fund had $265 on hand at the end of the month. Prepare the journal entries to establish the fund and replenish the fund at the end of the month, recording any shortage or overage in the account.