Ex. 198 Hemingway Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $200. During March the following petty cash receipts were found in the petty cash...

Ex. 198

Hemingway Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $200. During March the following petty cash receipts were found in the petty cash box.

Receipt

Date No. For Amount

3/51Stamp Inventory$78

72Freight-Out42

93Miscellaneous Expense12

114Travel Expense48

145Miscellaneous Expense10

The fund was replenished on March 15 when the fund contained $8 in cash. On March 20, the amount in the fund was increased to $300.

Instructions

Journalize the entries in March that pertain to the operation of the petty cash fund.

Ex. 199

Gordon Company is unable to reconcile the bank balance at January 31. Gordon’s reconciliation is as follows.

Cash balance per bank€5,340

Add: NSF check1,240

Less: Bank service charge 35

Adjusted balance per bank€6,545

Cash balance per books€5,815

Less: Deposits in transit850

Add: Outstanding checks 1,650

Adjusted balance per books€6,615

Instructions

(a)Prepare a correct bank reconciliation.

(b)Journalize the entries required by the reconciliation.

Ex. 200

On April 30, the bank reconciliation of Baxter Company shows three outstanding checks: no. 354, $650, no. 355, $820, and no. 357, $655. The May bank statement and the May cash payments journal show the following.