QuestionQuestion

Transcribed TextTranscribed Text

Problem 7-2A Arial Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period. July 1 Established petty cash fund by writing a check on Coulter Bank for $220.00. 15 Replenished the petty cash fund by writing a check for $218.40. On this date the fund consisted of $1.60 in cash and the following petty cash receipts: freight-out $85.30, postage expense $52.60, entertainment expense $48.90, and miscellaneous expense $30.27. 31 Replenished the petty cash fund by writing a check for $211.10. At this date, the fund consisted of $8.90 in cash and the following petty cash receipts: freight-out $80.90, charitable contributions expense $45.40, postage expense $47.70, and miscellaneous expense $37.10. Aug. Replenished the petty cash fund by writing a check for $205. 90. On this date, the fund consisted 15 of $14.10 in cash and the following petty cash receipts: freight-out $76.30, entertainment expense $41.40, postage expense $33.00, and miscellaneous expense $56.90. 16 Increased the amount of the petty cash fund to $325.00 by writing a check for $105.00. 31 Replenished petty cash fund by writing a check for $300.60. On this date, the fund consisted of $24.40 in cash and the following petty cash receipts: postage expense $132.10, travel expense $92.90, and freight-out $74.40. *(a) Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation July 1 July 15 July 31 Debit Cre dit ,__ _____ __. I I,___ _____ ..... ...._ _____ ____,! I._ ______ _ ,..__ _____ ....,I .... I _____ ___, ...._ _______ II,___ _____ ..... Aug. 15 I ________ _ Aug. 16 _ ! _______ _, Aug. 31 !.._ ________, _____ 11 _ ----- _ ______ 11 .... -------- ..___ _____ ___.II .... ______ .... _____ 1 _1 ----- Attempts: 0 of 3 used *(b) The parts of this question must be completed in order. This part will be available when you complete the part above. *Problem 7-3A On May 31, 2014, Terrell Company had a cash balance per books of $6,951.50. The bank statement from Home Town State Bank on that date showed a balance of $6,974.60. A comparison of the statement with the cash account revealed the following facts. 1. The statement included a debit memo of $47.00 for the printing of additional company checks. 2. Cash sales of $734.00 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $784.00. The bank credited Terrell Company for the correct amount. 3. Outstanding checks at.May 31 totaled $473.25. Deposits in transit were $2,086.15. 4. On May 18, the company issued check No. 1181 for $682 to Barry Dietz on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Terrell Company for $628. 5. A $3,170.00 note receivable was collected by the bank for Terrell Company on May 31 plus $87.00 interest. The bank charged a collection fee of $27.00. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Bridges Company to Jon Newton for $770.00 that was incorrectly charged to Terrell Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $673.00 for a check issued by Sandy Grifton, a customer, to Terrell Company on account. (a) Prepare the bank reconciliation at May 31, 2014. (Reconcile the bank balance first and then the book balance.) Add: TERRELL COMPANY Bank Reconciliation May 31, 2014 _____ ___.I $1 _____ __ _____ 1_1 ___ _ Less: .. ! ________ _. Add: Less: $.._I ____ ___. I $ $ .... I _____ ____. (b) Prepare the necessary adjusting entries for Terrell Company at May 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. (To record the collection of the note.) 2. (To record NSF check.) 3. (To record error in deposit.) 4. (To record error on check.) 5. (To record check printing charge.) Debit Credit ....__ _____ ___.I I-------- ... .___ ___ __,I _I ___ _ ..__ ___ __.1 _1 ___ _ ......_ ______ I.... ______ I .... ,__ _____ ..... I.... ______ I _. _____ 1_1 ___ _ ...._ ____ 1 _1 ---- ....__ _____ ___.I .... I ______ __ ......_ _____ ___.I .... I ______ ..... ..__ ___ __.I .._I ___ _____, ....__ _____ __.I .... 1 _____ ____. ...._ ____ 11 ____ _ Question Attempts: 0 of 3 used *Exercise 7-7 LaSalle Company established a petty cash fund on May 1, cashing a check for $120.00. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $1.58. Receipts: delivery expense $27.50; postage expense $37.00; and miscellaneous expense $52.62. July 1: Cash in fund $4.00. Receipts: delivery expense $24.00; entertainment expense $48.25; and miscellaneous expense $43. 75. On July 10, LaSalle increased the fund from $120.00 to $170.00. Prepare journal entries for LaSalle Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation May 1 June 1 July 1 July 10 Debit e 11 11 11 11 11 11 11 11 11 11 11 11 11 Credit Question Attempts: 0 of 3 used *Exercise 7-14 Nayak Company has recorded the following items in its financial records. Cash in bank Cash in plant expansion fund Cash on hand Highly liquid investments Petty cash Receivables from customers Stock investments $45,634 104,715 8,788 35,734 578 90,319 61,546 The cash in bank is subject to a compensating balance of $5,153. The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. What amount should Nayak report as "Cash and cash equivalents" on its balance sheet? Cash and cash equivalents $._I ________ __, Question Attempts: 0 of 3 used *Exercise 8-3 The ledger of Elburn Company at the end of the current year shows Accounts Receivable $151,000, Sales Revenue $859,700, and Sales Returns and Allowances $34,300. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Elburn determines that T. Thum's $2,200 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $2,800 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 3% of net sales, and (2) 12% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $290 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 2% of net sales and (2) 6% of accounts receivable. Account Titles and Expl anation (a) (b) (1) (2) (c) (1) (2) Debit Credit _____ 1 _1 ___ _ _______ __.I .... I _____ ____. .___ _____ __.II .... ______ .... _____ 1 _1 ___ _ .___ _____ __.I .... I ______ .... _____ 11 ____ _ .___ _____ __.I I.___ _____ ..... _____ 1_1 ___ _ _____ 1_1 ___ _ _______ ..... II .... ______ .... Question Attempts: 0 of 3 used *Exercise 8-5 At December 31, 2013, Crawford Company had a balance of $19,790 in Allowance for Doubtful Accounts. During 2014, Crawford wrote off accounts totaling $14,380. One of those accounts ($3,330) was later collected. At December 31, 2014, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $25,410. Prepare journal entries to record the 2014 transactions of Crawford Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (To record amount written off) (To reverse write-off) (To record collection of writeoff) (To record estimated bad debts for the year) Debit Credit _____ I..._I ___ __, ...__ ____ ____.I .... I _____ _ ...__ ____ ____.I I...__ ____ ____. _____ 11 ____ _ _____ 1 _1 ___ ____ _______ I.... -------- I _______ 11 .... -------- ______ ___.I ..... I ____ __. Question Attempts: 0 of 3 used *Exercise 8-14 (Part Level Submission) Lashkova Company had accounts receivable of $148,200 on January 1, 2014. The only transactions that affected accounts receivable during 2014 were net credit sales of $1,368,000, cash collections of $1,278,400, and accounts written off of $30,800. *(a) Compute the ending balance of accounts receivable. Ending balance of accounts receivable $!..._ _______ __. Attempts: 0 of 3 used *(b) The parts of this question must be completed in order. This part will be available when you complete the part above. *(c) The parts of this question must be completed in order. This part will be available when you complete the part above. *Problem 8-7 A On January 1, 2014, Derek Company had Accounts Receivable $164,460, Notes Receivable $123,600, and Allowance for Doubtful Accounts $111,700. The note receivable is from Kaye Noonan Company. It is a 4- month, 12% note dated December 31, 2013. Derek Company prepares financial statements annually. During the year, the following selected transactions occurred. Jan. 5 20 Feb. 18 Apr. 20 30 May 25 Aug. 18 25 Sept. 1 Sold $118,600 of merchandise to Zwingle Company, terms n/15. Accepted Zwingle Company's $118,600, 3-month, 9% note for balance due. Sold $108,600 of merchandise to Gerard Company and accepted Gerard's $108,600, 6- month, 9% note for the amount due. Collected Zwingle Company note in full. Received payment in full from Kaye Noonan Company on the amount due. Accepted Isabella Inc.'s $103,600, 3-month, 7% note in settlement of a past-due balance on account. Received payment in full from Gerard Company on note due. The Isabella Inc.'s note was dishonored. Isabella Inc.'s is not bankrupt; future payment is anticipated. Sold $15,400 of merchandise to Fernando Company and accepted a $15,400, 6-month, 10% note for the amount due. Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 11 11 11 11 11 11 11 ...__ _____ ____.I I...__ _____ ____. I ..__ _____ ____.II .... ______ ...., I .__ ___ ___.I ..._I ___ __ .__ ___ ___.I .__I----- .__ ______ IIL....-_____ ..... ..__ ______ 11L.....------- ______ 11 _____ ____. ..__ _____ ____.II L-_____ _...... ...__ ______ IL-1 _____ _...... ..__ ______ IL-1 _____ _ _____ I..._I ___ _..... ..__ ______ IL-1 _____ ....... ....__ ___ __.11.,,_1 ___ _...., ______ I._I------ ...__ ______ I.... I _____ ____.

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Exercise 7-7
May 1 Petty Cash Fund 120.00
Cash 120.00

June 1 Delivery Expense 27.50
Postage Expense 37.00
Miscellaneous Expense 52.62
Cash Over/Short 1.30
Cash 118.42

July 1 Delivery Expense 24.00
Entertainment Expense 48.25
Miscellaneous Expense 43.75
Cash 116.00

July 10 Petty Cash Fund 50.00
Cash 50.00

Exercise 7-14

Cash in Bank 45,634
Less: Compensating Balance (5,153)
Cash on hand 8,788
Highly liquid investments 35,734
Petty cash 578
Cash and Cash Equivalents 85,581

Total CCE for Cash flow statement 85,581...
$25.00 for this solution

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Financial Accounting Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats