Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 4, Problem 11QC
To determine
To find: The correct option, the option which indicates the correct
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On September 29, the company determined that the petty cash fund needed to be increased to $1,000. What is the correct journal entry?
9. When preparing a check and you commit an error, what should you do?
a. Get a pencil eraser and erase the error.
b. Get a white ink pen and erase the error.
6.
c. Cancel the check and prepare a new one.
d. Call an ambulance.
10. It is a report issued by a bank (on a monthly basis) which shows the deposits
and withdrawals during the period and the cumulative balance of a
depositor's bank account.
a. Credit card billing statement
b. ATM card
c. Bank statement
d. T- account
Crane Company established a $100 petty cash fund on August 1. On August 31, the fund had $5 cash remaining and petty cash receipts for postage $31, office supplies $22, and miscellaneous expense $40.Prepare journal entries to establish the fund on August 1 and replenish the fund on August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Aug. 1Aug. 31
Aug. 1Aug. 31
Chapter 4 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 4 - Prob. 1QCCh. 4 - Prob. 2QCCh. 4 - Prob. 3QCCh. 4 - Prob. 4QCCh. 4 - Prob. 5QCCh. 4 - Prob. 6QCCh. 4 - Prob. 7QCCh. 4 - Why does cash require some specific internal...Ch. 4 - Prob. 9QCCh. 4 - Prob. 10QC
Ch. 4 - Prob. 11QCCh. 4 - Prob. 12QCCh. 4 - Prob. 4.1ECCh. 4 - Prob. 4.1SCh. 4 - Prob. 4.2SCh. 4 - (Learning Objective 2: Describe objectives and...Ch. 4 - Prob. 4.4SCh. 4 - (Learning Objective 2: Explain the objectives and...Ch. 4 - (Learning Objective 3: Evalue internal controls...Ch. 4 - Prob. 4.7SCh. 4 - Prob. 4.8SCh. 4 - Prob. 4.9SCh. 4 - Prob. 4.10SCh. 4 - Prob. 4.11SCh. 4 - Prob. 4.12SCh. 4 - Prob. 4.13SCh. 4 - Prob. 4.14SCh. 4 - Prob. 4.15AECh. 4 - Prob. 4.16AECh. 4 - Prob. 4.17AECh. 4 - Prob. 4.18AECh. 4 - Prob. 4.19AECh. 4 - Prob. 4.20AECh. 4 - Prob. 4.21AECh. 4 - Prob. 4.22BECh. 4 - Prob. 4.23BECh. 4 - Prob. 4.24BECh. 4 - (Learning Objectives 1, 2, 3: Describe fraud and...Ch. 4 - Prob. 4.26BECh. 4 - Prob. 4.27BECh. 4 - Prob. 4.28BECh. 4 - Prob. 4.29QCh. 4 - Prob. 4.30QCh. 4 - Prob. 4.31QCh. 4 - Prob. 4.32QCh. 4 - Prob. 4.33QCh. 4 - Prob. 4.34QCh. 4 - Prob. 4.35QCh. 4 - Prob. 4.36QCh. 4 - Prob. 4.37QCh. 4 - Prob. 4.38QCh. 4 - Prob. 4.39QCh. 4 - Prob. 4.40QCh. 4 - Prob. 4.41APCh. 4 - Prob. 4.42APCh. 4 - Prob. 4.43APCh. 4 - Prob. 4.44APCh. 4 - Prob. 4.45BPCh. 4 - (Learning Objectives 2, 3: Explain the objectives...Ch. 4 - (Learning Objective 3: Evaluate internal controls)...Ch. 4 - Prob. 4.48BPCh. 4 - Prob. 4.49CEPCh. 4 - Prob. 4.50CEPCh. 4 - Prob. 4.51SCCh. 4 - Prob. 4.52DCCh. 4 - Prob. 4.53DCCh. 4 - Prob. 4.54EICCh. 4 - Prob. 1FFCh. 4 - Prob. 1FA
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- 4. The debit side of a company’s trial balance totals $800 more than the credit side. Which one of the following errors would fully account for the difference? A $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account. B Discount received $400 has been debited to discount allowed account C A receipt of $800 for commission receivable has been omitted from the records D The petty cash balance of $800 has been omitted from the trial balance. 7. Which of the following items appear on the same side of the trial balance? (CHOOSE A,B,C or D) A Drawings and accruals B Freight out and prepayments C Freight in and rental income D Opening inventory and purchase returns Answer questions and explain why did you pick this answerarrow_forwardBonita Company established a $110 petty cash fund on August 1. On August 31, the fund had $16 cash remaining and petty cash receipts for postage $41, office supplies $22, and miscellaneous expense $31.Prepare journal entries to establish the fund on August 1 and replenish the fund on August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Aug. 1Aug. 31 Aug. 1Aug. 31arrow_forwardMercury Company’s unadjusted book balance at September 30 is $722. If the company's accountant mistakenly recorded a $18 check as $81. After correcting the mistake, Mercury Company would show a cash balance of $______arrow_forward
- 17. Find the ending balance if the original balance was $425.32 and the followingtransactions occurred over the space of a week: wrote a check, $16;paycheck deposit, $235.21; check deposit, $30; ATM, $20; wrote a check,$63.45; deposit, $30; maintenance fee, $11; interest, $0.32.A. $609.76B. $610.40C. $650.08D. $649.76arrow_forwardRoscoe's Rock Shop deposited a check for $675, but it was recorded on their books as a check for $576. This error of $99 would be: A. subtracted from Roscoe's book balance. B. added to Roscoe's book balance. C. added to the bank balance. O D. subtracted from the bank balance.arrow_forwardOn June 30, the check register balance is $391.04. The service charge is $4.10, and interest earned is $1.23. Check #124 for $9.53 was not entered, and a debit purchase for $15.75 was incorrectly entered as $17.55. A deposit for $81.70 was not entered. Question 1 What is the total amount that should be deducted from the checkbook register balance? Answers A. $129.86 B. $31.18 C. $29.38 D. $19.85 Question 2 What is the corrected checkbook balance? Answers A. $465.14 B. $481.20 C. $462.14 D. $261.18 Question 3 On April 1, your checkbook balance is $442.22, and the bank statement balance is $542.33. The service charge is $2.80, and interest earned is $1.57. Outstanding are check #131 for $53.34 and debit purchases of $18.92 and $29.08. What is your available bank balance? Answers A. $440.99 B. $442.22 C. $437.85 D. $443.45arrow_forward
- Suppose a co-worker has recorded a cash disbursement twice (Supplies Expense was debited twice for $100 and Cash was credited twice for $100) and wants you to record a correcting entry that will reverse the mistake. The correcting entry will record a debit to the Cash account and a credit to the Supplies account. Would you make this correcting entry? What should you investigate before making a decision about the correcting entry? Are there any other steps you would take to address this issue?arrow_forwardOn January 31, Jema hardware received a check from a customer for payment of an invoice. The 6,000 invoice was dated May 22, and included credit terms of 1/10, n/45. On January 25, the customer returned P600 of the merchandise because it was defective. How would this transaction be recorded in Jema's cash receipts journal?arrow_forwardDuring the month of July, Clanton Industries Issued a check in the amount of $923 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should: Multiple Choice Add the check amount to the bank balance. O Make a journal entry in the company records for an error. Add the check amount to the book balance of cash. O Deduct the check amount from the bank balance. 0. Deduct the check amount from the book balance of cash.arrow_forward
- Rapid Delivery Services establishes a Change Fund of $200. At the end of the day, RapidDelivery Services had $1,230 on hand. The journal entry to record the day’s receipts wouldinclude a:a) Debit to Change Fund.b) Credit to Income from Services.c) Debit to Petty Cash Fund.d) None of the answers listed.arrow_forwardOn September 1, French company has decided to initiate a petty cash fund in the amount of $800. A. On September 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $37, Supplies $126, Postage Expense $260, Repairs and Maintenance Expense $168, Miscellaneous Expense $149. The cash on hand at this time was $55. B. On September 14, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $19, Supplies $180, Postage Expense $60, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $210. C. On September 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $90, Postage Expense $63, Repairs and Maintenance Expense $182, Miscellaneous Expense $191. The cash on hand at this time was $30. D. On September 29, the company determined that the petty cash fund needed to be increased to $1,000. E. On September 30, the petty…arrow_forwardOn September 1, French company has decided to initiate a petty cash fund in the amount of $800. A. On September 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $37, Supplies $124, Postage Expense $260, Repairs and Maintenance Expense $168, Miscellaneous Expense $149. The cash on hand at this time was $57. B. On September 14, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $20, Supplies $170, Postage Expense $60, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $210. C. On September 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $90, Postage Expense $63, Repairs and Maintenance Expense $182, Miscellaneous Expense $191. The cash on hand at this time was $30. D. On September 29, the company determined that the petty cash fund needed to be increased to $1,000. E. On September 30, the petty…arrow_forward
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