Session:8 Fraud, Internal Controls, and Cash
Exercise Set A
Principles of Accounting, Volume 1: Financial Accounting | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-financial-accounting
EA 1. LO 8.5Record the following transactions:
- Started a petty cash fund in the amount of $300.
- Replenished petty cash fund using the following expenses: Auto $18, Office Expenses $35, Postage Expense $56, Miscellaneous Expenses $67. Cash on hand is $124.
- Increased petty cash by $50.
EA 2. LO 8.5Record the following transactions:
- Started a petty cash fund in the amount of $200.
- Replenished petty cash fund using the following expenses: Auto $15, Office Expenses $20, Postage Expense $81, Miscellaneous Expenses $66. Cash on hand is $10.
- Increased petty cash by $75.
EA 3. LO 8.5Record the following transactions:
- Started a petty cash fund in the amount of $300.
- Replenished petty cash fund using the following expenses: Auto $69, Office Expenses $77, Postage Expense $56, Miscellaneous Expenses $98. Cash on hand is $6.
- Increased petty cash by $60.
EA 4. LO 8.5Record the following transactions:
- Started a petty cash fund in the amount of $500.
- Replenished petty cash fund using the following expenses: Auto $24, Office Expenses $43, Postage Expense $19, Miscellaneous Expenses $25. Cash on hand is $389.
- The company has decided to reduce the petty cash fund to $300.
EA 5. LO 8.6The bank reconciliation shows the following adjustments:
- Deposits in transit: $1,234
- Outstanding checks: $558
- Bank service charges: $50
- NSF checks: $250
Prepare the correcting journal entry.
EA 6. LO 8.6The bank reconciliation shows the following adjustments:
- Deposits in transit: $852
- Notes receivable collected by bank: $1,000; interest: $20
- Outstanding checks: $569
- Error by bank: $300
- Bank charges: $30
Prepare the correcting journal entry.
EA 7. LO 8.6Using the following information, prepare a bank reconciliation.
- Bank balance: $3,678
- Book balance: $2,547
- Deposits in transit: $321
- Outstanding checks: $108 and $334
- Bank charges: $25
- Notes receivable: $1,000; interest: $35
EA 9. LO 8.6Using the following information, prepare a bank reconciliation.
- Bank balance: $4,587
- Book balance: $5,577
- Deposits in transit: $1,546
- Outstanding checks: $956
- Interest income: $56
- NSF check: $456
EA 11. LO 8.6Using the following information, prepare a bank reconciliation.
- Bank balance: $6,988
- Book balance: $6,626
- Deposits in transit: $1,600
- Outstanding checks: $599 and $1,423
- Bank charges: $75
- Bank incorrectly charged the account $75. The bank will correct the error next month.
- Check number 2456 correctly cleared the bank in the amount of $234 but posted in the accounting records as $324. This check was expensed to Utilities Expense.