Assistance please
CleevPrinciples of Financial Accounting
ACC 120-20
CHAPTER 8 Practical Test
NAME________________________
Problem One
On November 1, Winston T. Kat Company established a $500 petty cash fund. At the end of November, the petty cash fund contained the following cash and petty cash tickets:
1. |
Cash of |
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$19.00 |
2. |
Petty Cash tickets for: |
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a. Paid for transportation on inventory purchased from Blue-Eyed Dogz Co |
$49.00 |
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b. Toner Cartridge for office printer |
29.25 |
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c Office Supplies |
119.90 |
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d. Airline Ticket for president trip |
176.36 |
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e. Lunch for vendor and purchasing manager |
60.00 |
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f. Postage for package delivered across town. |
15.00 |
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Required: You will need to determine the names of the accounts that you will use.
1. Prepare the journal entry to establish the petty cash fund.
2. Determine which account you would use for the expense amounts and prepare the entry to replenish the petty cash fund on November 30.
3. Assume Kat decides to increase the petty cash fund to $690. Make the journal entry to accomplish this.
Journal |
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DATE |
Description |
DEBIT |
CREDIT |
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Problem Two
Use the following information for Woods Paper Products.
· Deposit of $5,794.62 has not been recorded by the bank
· Outstanding checks: #4534, $600.00; #4545, $533.25; and #4550, $400.00; for a total of $1,533.25
· Company Cash balance is $5,695.62
· Bookkeeper recorded a $1,524.00 check as $15,240.00 in payment of the current month's rent
· Bank balance at November 30, 2014 was $16,500.25
· Deposit of $300 was credited by the bank for $3,000.00
· Customer's check, N.O. Money, for $1,280.00 was returned for insufficient funds
· Bank service charge is $70.00
Required:
1. Prepare the bank reconciliation for Woods Paper Products as of November 30, 2014.
2. Prepare the necessary journal entries.
Bank Reconciliation
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Journal |
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DATE |
EXPLANATION |
PR |
DEBIT |
CREDIT |
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PROBLEM THREE
Discuss the specific characteristics of an effective system of internal control for purchases and payment.
Problem Four
The following information is given for Winston & Callie’s Company for November. Be sure to read the additional information on the next page so complete the bank reconciliation.
Cash Balance Per Winston & Callie Company check book, Nov. 30, $13,470.
Cash Deposits |
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Checks Written |
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Date |
Cash Debit |
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Date |
Check No. |
Cash Credit |
Nov 1 |
1,216 |
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Nov 2 |
2076 |
1,522 |
8 |
10,293 |
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3 |
2077 |
72 |
15 |
10,780 |
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6 |
2078 |
15 |
22 |
5,480 |
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7 |
2079 |
16,000 |
28 |
8,100 |
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8 |
2080 |
2,290 |
Total |
35,869 |
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12 |
2081 |
8150 |
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16 |
2082 |
10 |
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17 |
2083 |
200 |
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18 |
2084 |
5,001 |
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Total |
33,260 |
FIRST NATIONAL BANK
Statement for Winston & Callie’s Company
BANK STATEMENT for Nov 2014
Checks/Debits |
Deposits/Credits |
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Posting Date |
Check No. |
Amount |
Posting Date |
Amount |
11/02 |
2076 |
1,522.00 |
11/03 |
1,621.00 |
11/02 |
2077 |
72.00 |
11/09 |
10,293.00 |
11/03 |
2079 |
16,000.00 |
11/12 |
954.00 BC |
11/05 |
2080 |
2,290.00 |
11/16 |
10,780.00 |
11/10 |
2081 |
8150.00 |
11/23 |
5,480.00 |
11/10 |
2082 |
10.00 |
11/30 |
101.00 INT |
11/10 |
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30.00 NSF |
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11/11 |
2084 |
5,001.00 |
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11/17 |
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15.00 SC |
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11/27 |
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95.00 EFT |
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Balance as of 11-30-2012 $6,905.00 |
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Codes: |
NSF-Non-Sufficient Funds Check SC- Service Charge EFT Electronic Funds Transfer |
INT-Interest earned on checking BC-Bank Collection |
Additional Information:
1. NSF check was written by N.O. Moneybags.
2. The $954 bank collection (BC) represents a note receivable, collected by the bank.
3. The Nov. 3 deposit, recorded as $1,216 for cash sales by Winston’s and Callie’s Co., was recorded correctly by the bank as $1,621.
4. EFT Payment was for an Insurance payment
Required: Prepare the Bank Reconciliation for November. You do not have to prepare the journal entries.
Bank Reconciliation
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