Moraine Park Technical College Accounting 1 – Problem Solving Exercise 5 Cash Use the following for questions 1 7 and respond to how each item would be included on a bank reconciliation

							Moraine Park Technical College
Accounting 1 – Problem Solving Exercise 5 - Cash

      Use the following for questions 1-7 and respond to how each item would be included on a bank reconciliation.
      A. a deduction from the balance per depositor's records B. an addition to the balance per bank statement
      C. a deduction from the balance per bank statement      D. an addition to the balance per depositor's records

1.     _____ Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700.

2.     _____ Accompanying the bank statement was a credit memorandum for a note collected by the bank.

3.     _____ The amount of any outstanding checks.

4.     _____ A debit memorandum for a service charge.

5.     _____ A check drawn by a depositor in payment of a voucher for $925 was recorded in the check register as $295.

6.     _____ The amount of any deposits in transit.

7.     _____ A debit memorandum for an NSF check.

8. Journal entries based on the bank reconciliation are required on the depositor's books for ____________.
   A. outstanding checks      B. deposits in transit   C. bank errors     D. book adjustments

The following information pertains to questions 9&10
The following information is for Cole Co. for the month.
Balance per the bank statement $2,806       Cash account balance $2,930     Outstanding checks $585
Deposits in transit $675 Bank service charge $25 A check written for $98 for supplies was recorded as $89
The following bank reconciliation was prepared.
                                                         COLE CO.
                                                      Bank Reconciliation
     Balance per bank statement...........…..…....….. $2,806       Balance per depositor's records...………….......... $2,930
      Add: Deposits in transit not recorded by bank      675        Deduct: Bank service charge..…....….... $ 25
                                                      $3,481                Recording error...…………........ 9            34
      Deduct: Outstanding checks……….................     585
     Adjusted balance per bank..…………............... $2,896         Adjusted book balance..…………......................... $2,896

9.     The bank reconciliation is ___________________.
       A. incorrect as completed B. correct as completed

10. The journal entry recorded after preparing the bank reconciliation is ________________________ _________
                                                                          ________________________       _________
                                                                            _________________________ __________
The following information pertains to questions 11-15
The following transactions took place regarding petty cash.
Voucher No. 127 for $200 established the fund and Check 119 paid Voucher No. 127.
Petty cash fund contains $108.80 in cash and Voucher 190 was prepared to replenish the fund based on disbursements as
indicated by the following receipts: office supplies $24.50 misc admin expense $33.75 misc selling expense $31.60
Issued Check No. 182 in payment of Voucher 190.
Voucher 213 for $50 increased the petty cash fund and issued Check No. 205 in payment of Voucher 213.
11. The entry to record Voucher No. 127 is                  _______________________ __________
                                                               _______________________               __________
12. The entry to record Check No. 119 is                    _______________________ __________
                                                               _______________________               __________
13. The entry to record Voucher No. 190 is                  _______________________ __________
                                                               _______________________               __________
14. The entry to record the check to replenish the fund is _______________________       __________
                                                            _______________________ __________
                                                            _______________________ __________
                                                            _______________________ __________
                                                               _______________________               __________
15. The entry to record the increase to the fund is        _______________________ __________
                                                               _______________________               __________
                                                            _______________________      __________
                                                               _______________________               __________
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