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CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment
	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

On March 1, journalize the entry to record the cash receipts and cash sales. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3

The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016:

1.	Cash balance according to the company’s records at May 31, 2016, $18,257.
2.	Cash balance according to the bank statement at May 31, 2016, $27,261.
3.	Checks outstanding, $14,624.
4.	Deposit in transit, not recorded by bank, $6,131.
5.	A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6.	Bank debit memo for service charges, $11.
A.	Prepare a bank reconciliation, using the format shown in Exhibit 13 . Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word “Deduct:” or “Add:” will automatically appear if it is required.
B.	If the balance sheet were prepared for Zek’s Co. on May 31, 2016, what amount should be reported for cash?
C.	Must a bank reconciliation always balance (reconcile)?

A. Prepare a bank reconciliation, using the format shown in

Exhibit 13

. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word “Deduct:” or “Add:” will automatically appear if it is required.

ZEK’S CO.

Bank Reconciliation

May 31, 2016


1	Cash balance according to bank statement
2
3
4
5
6
7	Cash balance according to company’s records
8
9
10
11

The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016:

1.	Cash balance according to the company’s records at May 31, 2016, $18,257.
2.	Cash balance according to the bank statement at May 31, 2016, $27,261.
3.	Checks outstanding, $14,624.
4.	Deposit in transit, not recorded by bank, $6,131.
5.	A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6.	Bank debit memo for service charges, $11.

Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Zek's Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment
	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4

Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles):

Instructions

On March 1, Check No. 245-13 is issued to establish a petty cash fund of $1,125.

On April 1, the amount of cash in the petty cash fund is now $122. Check No. 271-13 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $594; miscellaneous selling expense, $216; miscellaneous administrative expense, $168. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,125, record the discrepancy in the cash short and over account.)

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment
	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
591	Miscellaneous Administrative Expense
592	Miscellaneous Selling Expense
710	Interest Expense

A. On March 1, journalize the following transaction: Check No. 245-13 is issued to establish a petty cash fund of $1,125. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

B. On April 1, journalize the following transaction: The amount of cash in the petty cash fund is now $122. Check No. 271-13 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $594; miscellaneous selling expense, $216; miscellaneous administrative expense, $168. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,125, record the discrepancy in the cash short and over account .) Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5

The following data were gathered to use in reconciling the bank account of Eves Company:

Balance per bank	$8,735
Balance per company records	7,900
Bank service charges	50
Deposit in transit	2,535
NSF check	2,050
Outstanding checks	5,470
	Instructions
A.	What is the adjusted balance on the bank reconciliation?
B.	On March 1, journalize any necessary entries for Eves Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Eves Company

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment
	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

B. On March 1, journalize any necessary entries for Eves Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3