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Chapter 8

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3 views

Chapter 8

xv

Uploaded by

brubbs56
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 9

ACC 112

Tutorial
Chapter 8 : Cash and Internal Controls
Exercise 8-8
Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the
fund shows $104 in cash along with receipts for the following expenditures:
Transportation-in $4
Postage expenses 0
12
Miscellaneous expenses 38
Total 0
$243
The petty cashier could not account for a $3 shortage in the fund. Waupaca uses
the perpetual system in accounting for merchandise inventory.
Prepare the journal entry to establish the fund on September 9.

Date General Journal Debit Credit


Sep. 9 Petty Cash 35
Cash 0 35
0
Prepare the journal entry to reimburse the fund on September 30.

Date General Journal Debit Credit


Sep. 30 Merchandise inventory 4
Postage expense 0
12
Miscellaneous expenses 38
Cash short and over 03
Cash ($350- $104) 24
6

Exercise 8-8
Prepare the journal entry on October 1, to increase the fund to $400.

Date General Journal Debit Credit


Oct. 1 Petty Cash ($400 - $350) 5
Cash 0 5
0

Exercise 8-8
Problem 8-4B
Part 1

SEVERINO CO.
Bank Reconciliation
December 31

Bank statement balance ….... $46,822.4 Book balance ………. $32,878.3


0 0
Ad Ad
d dError (Ck 1267)
Deposit of Dec. 9,583.10 $ 9.00
31…… Note proceeds... 18,989.0
56,405.5 18,980.00 051,867.3
0
0
Deduc Deduc
t tNSF check…….
Checks No. 1242 ……. $
410.40 $ 762.50
Printing fee..…… 861.50
1273 …….. 99.00
4,589.30
1282 …….. 5,399.70
400.00
Adjusted bank balance ………… $51,005.8 Adjusted book balance $51,005.8
0 0
Part 2
Date General Journal Debit Credit

Dec. 31 Cash 9.00

Office Supplies 9.00

Dec. 31 Cash 18,980.00

Notes Receivable 18,980.00

Dec. 31 Accounts Receivable—Titus Industries 762.50

Cash 762.50

Dec. 31 Miscellaneous Expenses 99.00

Cash 99.00
Thank you

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