Exam 8: Banking Procedures and Control of Cash

Prepare journal entries for the following petty cash fund transactions: Nov. 1 Established a $50 petty cash fund. 15 Increased the petty cash fund to have a new balance of $100. 30 Replenished the petty cash fund. Currency and coins remaining were $20. Approved paid vouchers were: $10 donation expense; $16 postage expense; $30 office supplies expense; and $20 misc. expense.

The normal balance of the Petty Cash account is a credit.

A company would use a change fund if

A signature card shows the signature of only the person who authorizes others in the company to sign cheques.

Deposits in transit result because of a timing difference between the bank records and Ledger records.

Why is the petty cash account not credited if you add up the vouchers in the petty cash box and they equal $72.00?

Which of the following bank reconciliation items would NOT be reflected in a journal entry?

Phil's Training Service's $100 petty cash fund has a shortage of $4. The facts are: $80 in valid receipts for expenses; $16 in coins and currency. The journal entry to replenish the petty cash fund would include a

Construct a bank reconciliation for Players Sporting Goods as of July 31, 2019, from the following information: Ending general ledger balance    $420 Ending bank statement balance    320 Deposits in transit                         220 Outstanding cheques                   155 Bank service charge (debit memo) 35

The use of physical cash in the business environment is increasing.

On a bank reconciliation, deposits added to the bank statement side are called

Bank service charges would be shown on a bank reconciliation as

The replenishment of the petty cash fund was recorded twice. This would cause

Determine the reconciled bank balance given the following: The balance per bank statement is $108 The balance per general ledger is $105 There is a credit memo for a note collected, $408 There is a credit memo for interest earned, $25 There is a debit memo for a customer's NSF cheque $350 Deposits in transit, $850 Outstanding cheques amount to $845 This month's service charge amounts to $50 There is a debit memo for cheque printing fees, $25

The entry to replenish the petty cash fund debited Insurance Expense for postage. This would cause

Cheques that have been processed by the bank and are no longer negotiable are

When a bank debits your account, it is decreasing the balance.

When a company sets up a change fund account it would be considered a(n)

Prepare journal entries for the following petty cash fund transactions: Jul. 1 Established a $75 petty cash fund. 9 Increased the petty cash fund to $100. 31 Replenished the petty cash fund. Currency and coins remaining were $20. Approved paid vouchers were $12 donation expense, $21 postage expense, $30 office supplies expense and $15 miscellaneous expense.

From the bank reconciliation no entry was recorded for a debit memo for a new cheque fee expense. This would cause