Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

1. Jones Companyhad checks outstanding totaling $5,400 on its June bankreconcili

ID: 2444275 • Letter: 1

Question

1.         Jones Companyhad checks outstanding totaling $5,400 on its June bankreconciliation. In July, Jones Company issued checks totaling$38,900. The July bank statement shows that $26,300 in checkscleared the bank in July. A check from one of Jones Company'scustomers in the amount of $300 was also returned marked "NSF." Theamount of outstanding checks on Davis Company's July bankreconciliation should be

A)        $12,600.

B)        $18,000.

C)        $17,700.

D)        $7,200.

2.         A $100 pettycash fund has cash of $18 and receipts of $80. The journalentry to replenish the account would include a

A)        debit to Cash for$80.

B)        credit to PettyCash for $84.

C)        debit to Cash Overand Short for $2.

D)        credit to Cash for$80

3.

8 pnts Using the following information, prepare a bankreconciliation for Gouge Company for July 31, 2005.

a.         The bankstatement balance is $3,506.

b.         The cashaccount balance is $3,630

c.         Outstandingchecks totaled $1,085.

d.         Deposits intransit are $1,170.

e.         The bankservice charge is $30.

f.          A checkfor $98 for supplies was recorded as $89 in the ledger.

4

6 pnts At August 31 Jones Company has this bank information:cash balance per bank $6,950; outstanding checks $762; deposits intransit $1,700; and a bank service charge $20. Determine theadjusted cash balance per bank at August 31, 2005.

5.         A very smallcompany would have the most difficulty in implementing which of thefollowing internal control activities?

A)        Separation ofduties

B)        Limited access toassets

C)        Periodicindependent verification

D)        Sound personnelprocedures

Explanation / Answer

1.         Jones Companyhad checks outstanding totaling $5,400 on its June bankreconciliation. In July, Jones Company issued checks totaling$38,900. The July bank statement shows that $26,300 in checkscleared the bank in July. A check from one of Jones Company'scustomers in the amount of $300 was also returned marked "NSF." Theamount of outstanding checks on Davis Company's July bankreconciliation should be

A)        $12,600.

B)        $18,000.

C)       $17,700.

D)        $7,200.


2.         A $100 pettycash fund has cash of $18 and receipts of $80. The journalentry to replenish the account would include a

A)        debit to Cash for$80.

B)        credit to PettyCash for $84.

C)        debit to Cash Overand Short for $2.

D)        credit to Cash for$80


Don't forget to rate if it ishelpful.

Best of luck