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Connect Financial Accounting Chapter 6

Q1. Waupaca Company creates a $380 petty cash money on September 9. On September 30, the fund mirrors $121 in cash together with receipts for the following expenditures: transport expenses of merchandise purchased, $58; pophase prices, $53; and assorted expenses, $143. The petty cashier can not account for a $5 shortage in the money. The agency supplies the perpetual device in audit for merchandise inventory.

You are watching: The entry to record reimbursement of the petty cash fund for postage expense should include:

Prepare (1) the September 9 enattempt to create the money, (2) the September 30 enattempt to reimburse the fund, and (3) an October 1 entry to increase the fund to $415.

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Q2. Palmona Co. creates a $250 petty cash fund on January 1. On January 8, the fund mirrors $145 in cash together with receipts for the adhering to expenditures: postage, $43; transportation-in, $14; distribution costs, $16; and also miscellaneous costs, $32. Palmona provides the perpetual device in accounting for merchandise inventory.

Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and also rise it to $300 on January 8, assuming no enattempt in component 2. (Hint: Make two separate entries for part 3.)

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Q3. Del Gato Clinic deposits all cash receipts on the day once they are received and also it provides all cash payments by inspect. At the cshed of service on June 30, 2017, its Cash account shows an $12,439 debit balance. Del Gato Clinic’s June 30 financial institution statement mirrors $11,160 on deposit in the financial institution.

Outstanding checks as of June 30 complete $1,210.The June 30 financial institution statement lists a $55 company charge.Check No. 919, provided through the canceled checks, was correctly drawn for $589 in payment of a energy bill on June 15. Del Gato Clinic wrongly recorded it via a delittle to Utilities Expense and a crmodify to Cash in the amount of $598.The June 30 cash receipts of $2,443 were put in the bank’s night depository after banking hours and were not taped on the June 30 bank statement.

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Q4. Nakashima Gallery had actually the complying with petty cash transactions in February of the existing year.

Feb 2 – Wrote a $350 examine, cashed it, and offered the proceeds and the petty cashbox to Chloe Addiboy, the petty cashier.Feb 5 – Purchased bond paper for the copier for $15.55 that is instantly provided.Feb 9 – Phelp $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping allude. Nakashima uses the perpetual mechanism to account for merchandise inventory.Feb 12 – Passist $7.45 postage to express mail a contract to a client.Feb 14 – Reimbursed Adina Sharon, the manager, $74 for business mileage on her auto.Feb 20 – Purchased stationery for $67.77 that is instantly provided.Feb 23 – Paid a courier $15 to supply merchandise marketed to a customer, terms FOB destination.Feb 25 – Paid $10.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.Feb 27 – Passist $50 for postage expenses.Feb 28 – The fund had actually $22.57 staying in the petty cash box. Sorted the petty cash receipts by accounts affected and also exreadjusted them for a check to reimburse the money for expenditures.Feb 28 – The petty cash fund amount is raised by $130 to a full of $480.

Required:1. Prepare the journal enattempt to establish the petty cash money.

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2. Prepare a petty cash payments report for February through these categories: distribution expense, mileage expense, pophase cost, merchandise inventory (for transportation-in), and also office provides price. Sort the payments into the proper categories and total the expenditures in each category.

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3. Prepare the journal entries for forced 2 to both (a) reimburse and (b) rise the money amount.

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Connect Financial Accounting Chapter 6 Quiz

Q1. On a financial institution reconciliation, an unrecorded debit memorandum for printing checks is:

Noted as a memorandum just.Added to the book balance of cash.Deducted from the book balance of cash.Added to the bank balance of cash.Deducted from the financial institution balance of cash.

Q2. The entry to establish a petty cash fund includes:

A debit to Cash and also a crmodify to Petty Cash.A debit to Cash and a credit to Cash Over and Short.A delittle bit to Petty Cash and also a crmodify to Cash.A delittle bit to Petty Cash and a credit to Accounts Receivable.A delittle to Cash and a crmodify to Petty Cash Over and Short.

Q3. Two clerks sharing the very same cash register is a violation of which internal control principle?

Establish duties.Maintain enough records.Incertain assets.Bond essential employees.Apply technological controls.

Q4. The entry to document reimbursement of the petty cash money for pophase expense should include:

A debit to Postage Expense.A debit to Petty Cash.A debit to Cash.A debit to Cash Quick and Over.A delittle to Supplies.

Q5. Freeguy Co. had net sales of $4.2 million and also finishing accounts receivable of $0.8 million. Its days’ sales uncollected equals:

5.3 days.69.5 days.19.2 days.11.5 days.292 days.

Q6. A agency had net sales of $21,500 and also finishing accounts receivable of $2,700 for the existing period. Its days’ sales ungathered equals: (Use 365 days a year.)

8.0 days.58.9 days.45.8 days7.4 days.45.2 days.

Q7. If a agency made a bank deposit on September 30 that did not appear on the financial institution statement dated September 30, in preparing the September 30 bank reconciliation, the company should:

Deduct the deposit from the bank statement balance.Sfinish the bank a delittle bit memorandum.Deduct the deposit from the September 30 book balance and also add it to the October 1 book balance.Add the deposit to the book balance of cash.Add the deposit to the financial institution statement balance.

Q8. Pelcher Co. maintains a $400 petty cash money. On January 31, the fund is replenished. The collected receipts on that day represent $110 for office gives, $140 for merchandise inventory, and also $70 for assorted costs. There is a cash overage of $4. Based on this information, the amount of cash in the fund before the replenishment is:

$400$320$80$76$84

Q9. Internal control plans and procedures have actually constraints not including:

Person error.Human fraud.Cost-benefit principle.Collusion.Starting duties.

Q10. Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenimelted. The accumulated receipts on that day reexisting $73 for Office Supplies, $137 for merchandise inventory, and also $22 for various expenses. The fund has a balance of $18. On October 1, the accountant determines that the money must be increased by $50. The journal enattempt to record the facility of the money on September 1 is:

Debit Cash $250; credit Petty Cash $250.Delittle bit Petty Cash $250; credit Accounts Payable $250.Delittle bit Miscellaneous Expense $250; credit Cash $250.Delittle Petty Cash $250; credit Cash $250.Delittle bit Cash $250; credit Accounts Payable $250.

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