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Study Guide 5
SECOND REVISED
Perfect Score
Name Identifying Accounting Terms Analyzing Transactions in a Cash Control System Identifying Accounting Concepts and Practices Total
13 12 20 45
Your Score
Pts. Pts. Pts. Pts.
Part One—Identifying Accounting Terms Directions: Select the one term in Column I that best fits each definition in Column II. Print the letter identifying your choice in the Answers column.
Column II
Column I
Answers
A. bank statement
1. A statement that guides the ethical behavior of a company and its employees. (p. 118)
1.
D
B. blank endorsement
2. A bank account from which payments can be ordered by a depositor. (p. 119)
2.
C
C. checking account
3. A signature or stamp on the back of a check, transferring ownership. (p. 120)
3.
H
D. code of conduct
4. An endorsement consisting only of the endorser’s signature. (p. 120)
4.
B
E. debit card
5. An endorsement indicating a new owner of a check. (p. 120)
5.
M
F. dishonored check
6. An endorsement restricting further transfer of a check’s ownership. (p. 120)
6.
L
G. electronic funds transfer
7. A check with a future date on it. (p. 121)
7.
K
H. endorsement
8. A report of deposits, withdrawals, and bank balances sent to a depositor by a bank. (p. 124)
8.
A
I. petty cash
9. A check that a bank refuses to pay. (p. 129)
9.
F
J. petty cash slip
10. A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents. (p. 131)
10.
G
K. postdated check
11. A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder. (p. 132)
11.
E
L. restrictive endorsement
12. An amount of cash kept on hand and used for making small payments. (p. 134)
12.
I
M. special endorsement
13. A form showing proof of a petty cash payment. (p. 135)
13.
J
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Part Two—Analyzing Transactions in a Cash Control System Directions: Analyze each of the following transactions into debit and credit parts. Print the letters identifying your choices in the proper Answers columns.
Account Titles A. Cash B. Petty Cash C. Accounts Receivable—R. Sandell
D. Supplies E. Accounts Payable—Suburban Office Supplies F. Miscellaneous Expense
Answers Transactions
Debit
Credit
1–2. Received bank statement showing bank service charge. (p. 127)
1.
F
2.
A
3–4. Received notice from a bank of a dishonored check from R. Sandell. (p. 130)
3.
C
4.
A
5–6. Paid cash on account to Suburban Office Supplies using EFT. (p. 131)
5.
E
6.
A
7–8. Purchased supplies using a debit card. (p. 132)
7.
D
8.
A
9–10. Paid cash to establish a petty cash fund. (p. 134)
9.
B
10.
A
12.
A
11–12. Paid cash to replenish a petty cash fund: $12.00; supplies, $3.50; miscellaneous expense, $8.50. (p. 136)
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11. D, F
CENTURY 21 ACCOUNTING, 9TH EDITION
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Name
SECOND REVISED
Date
Class
Part Three—Identifying Accounting Concepts and Practices Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false.
Answers
1. Because cash transactions occur more frequently than other transactions, the chances for making recording errors affecting cash are less. (p. 118)
1.
F
2. When a deposit is made in a bank account, the bank issues a receipt. (p. 119)
2.
T
3. There are four types of endorsements commonly used: blank, special, original, and restrictive. (p. 120)
3.
F
4. A check with a blank endorsement can be cashed by anyone who has possession of the check. (p. 120)
4.
T
5. When writing a check, the first step is to prepare the check stub. (p. 121)
5.
T
6. Most banks do not look at the date the check is written and will withdraw money from the depositor’s account anytime. (p. 121)
6.
F
7. The amount of a check is written twice on each check. (p. 121)
7.
T
8. A check that contains errors must be marked with the word VOID and another check must be written. (p. 122)
8.
T
9. An important aspect of cash control is verifying that the information on a bank statement and a checkbook are in agreement. (p. 125)
9.
T
10. An outstanding check is one that has been issued but not yet reported on a bank statement by the bank. (p. 125)
10.
T
11. Banks deduct service charges from customers’ checking accounts without requiring customers to write a check for the amount. (p. 126)
11.
T
12. Not only do banks charge a fee for handling a dishonored check, but they also deduct the amount of the check from the account as well. (p. 129)
12.
T
13. The journal entry for a payment on account using electronic funds transfer is exactly the same as when the payment is made by check. (p. 131)
13.
F
14. The source document for an electronic funds transfer is a memorandum. (p. 131)
14.
T
15. The source document for a debit card purchase is a memorandum. (p. 132)
15.
T
16. TechKnow Consulting maintains a petty cash fund for making large cash payments without writing checks. (p. 134)
16.
F
17. Businesses use petty cash when writing a check is not time or cost effective. (p. 134)
17.
T
18. A memorandum is the source document for the entry to record establishing a petty cash fund. (p. 134)
18.
F
19. Anytime a payment is made from the petty cash fund, a petty cash slip is prepared showing proof of a petty cash payment. (p. 135)
19.
T
20. When the petty cash fund is replenished, the balance of the petty cash account increases. (p. 136)
20.
F
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Study Skills Budgeting Your Time There is an old saying that time flies. And indeed it does. We all have a limited amount of time available for all the things we want to do every day. One of the most important things you do while in school is to prepare your lessons for class. Your study time is one of the most valuable assets that you have. It must be used to the greatest benefit. What Happens to Your Time? You might plan to spend a certain amount of time studying, but for one reason or another, you do not get the studying done. The telephone may ring, a friend might drop by, or a family member might ask you to run an errand. Soon the time that you intended to use for studying is gone, and you hardly realize what happened to the time. Make a Schedule and Keep It The only way to be sure that you do not lose your valuable study time is to make a schedule and stick with it. Let’s suppose you are taking four major subjects this term, and you need to spend from 30 minutes to an hour on each of them every evening. You may wish to set aside two hours before dinner and one hour after dinner for study. Your schedule might look like this. 4:30–6:30 6:30–7:30 7:30–8:30
study dinner study
On those days when you have less homework to do, you may be able to forego the study period after dinner. This will leave you an hour and a half or so before you go to bed to talk with friends or to watch a television program. Or you may wish to use that time for reading. Your study schedule may be entirely different from this plan, but it is vital that you budget the time that you have available. Studying Before Class You may like to study before class in the morning. You may feel fresher in the morning and believe that you can get more work done then. This may be true, but it is usually unwise to leave assignments to complete just before class. It is very easy for an unavoidable interruption to occur, and you will not complete your work on time. If you like to study early in the morning, it is suggested that you use this time for organizing your work for the day, rereading assignments, or for reviewing for an examination. Working Students Many students are employed a few hours a day while they are in school. Those who work often budget their time better than those who do not work. Because they have a more rigid schedule, they often feel they must use their study time to better advantage. If you work, be assured that you will still be able to get all your assignments prepared properly. Stick To It Time does indeed fly. If we do not budget our time, we will not get all we should from school. The only way to be sure that you get your studying done on time is to set a study schedule and stick to it.
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SECOND REVISED
Name
Date
5-1 5
Class
WORK TOGETHER, p. 123
Endorsing and writing checks 1.
a.
b.
ENDORSE HERE
(Student’s signature)
X
ENDORSE HERE
Pay to the order of
X
Kelsey Sather (Student’s signature)
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
RESERVED FOR FINANCIAL INSTITUTION USE
c.
ENDORSE HERE
For deposit only to
X
the account of Balsam Lake Accounting (Student’s signature) DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE
2., 3., 4a. NO. 78
$
October 30 Corner Garage
162.00 20 - -
Date: To:
NO.
154 Main Street Balsam Lake, WI 54810-3982
Repairs
For:
Balsam Lake Accounting
1805 75 AMT. DEPOSITED . . . . 10 30 - 489 00 SUBTOTAL . . . . . . . . . . . . . . . . . . . . . 2,294 75
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . Date
Corner Garage One hundred sixty-two and no/100 Peoples national bank
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
2,294 75 162 00 2,132 75
FOR
Repairs
October 30 - 162.00 20
PAY TO THE ORDER OF
OTHER:
93-109 918
78
Balsam Lake, WI 54810
$
DOLLARS For Classroom Use Only
Student’s Signature
091004329 29136118
4b. NO. 79
$
October 30 St. Croix Supply
92.00 20 - -
Date: To: For:
NO.
154 Main Street Balsam Lake, WI 54810-3982
Supplies
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Balsam Lake Accounting
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
2,132 75 2,132 75 2,132 75 92 00 2,040 75
October 30 - 92.00 20
St. Croix Supply Ninety-two and no/100
PAY TO THE ORDER OF
$
DOLLARS
Peoples national bank FOR
Supplies
93-109 918
79
Balsam Lake, WI 54810
For Classroom Use Only
Student’s Signature
091004329 29136118 Chapter 5
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ON YOUR OWN, p. 123
Endorsing and writing checks a.
1.
b.
ENDORSE HERE
Pay to the order of
X
ENDORSE HERE
For deposit only to
X
Kenneth Burleson
the account of
(Student’s signature)
Centuria Hair Care (Student’s signature)
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
RESERVED FOR FINANCIAL INSTITUTION USE
2., 3., 4a. NO. 345
$
May 31 Uniforms Plus
355.00 20 - -
Date: To:
1250 State Street Centuria, WI 54824-7264
Uniform Rental
For:
CENTURIA HAIR CARE
2,106 53 AMT. DEPOSITED . . . . 5 31 - 456 25 SUBTOTAL . . . . . . . . . . . . . . . . . . . . . 2,562 78
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . Date
Uniforms Plus Three hundred fifty-five and no/100 County Bank
Dresser, WI 54009
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
2,562 78 355 00 2,207 78
FOR
79-1058 918
May 31 - 355.00 20
PAY TO THE ORDER OF
OTHER:
345
NO.
Uniform rental
$
DOLLARS For Classroom Use Only
(Student’s Signature)
091004329 29136118
4b. NO. 346 To:
May 31 HairWorld
For:
Supplies
$
412.00 20 - -
Date:
1250 State Street Centuria, WI 54824-7264
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
CENTURIA HAIR CARE
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
94 • Working Papers TE
2,207 78 2,207 78 2,207 78 412 00 1,795 78
HairWorld Four hundred twelve and no/100 County Bank
Supplies
346
79-1058 918
May 31 - 412.00 20
PAY TO THE ORDER OF
FOR
NO.
Dresser, WI 54009
$
DOLLARS For Classroom Use Only
(Student’s Signature)
091004329 29136118
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SECOND REVISED
Name
5-2
Date
Class
WORK TOGETHER, p. 128
Reconciling a bank statement and recording a bank service charge 1. July 29, 20 – –
RECONCILIATION OF BANK STATEMENT
Balance On Check Stub No. 106 ___ . . . . . . . . . . . .
$
1,575 00
(Date)
1,528 00
ADD OUTSTANDING DEPOSITS:
DEDUCT BANK CHARGES: Description
$
Amount
Date
Amount
Service Charge
$
Balance On Bank Statement . . . . . . . . . . . . . . . . . .
7/28/ – –
2 00
150 00
$
Total outstanding deposits
2 00
Total bank charges
$
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DEDUCT OUTSTANDING CHECKS: Ck. No.
Amount
103 105
Ck. No.
Amount
70 00 35 00
105 00
Total outstanding checks
Adjusted Check Stub Balance . . . . . . . . . . . . . .
2.
$
1,573 00
NO. 106
150 00 1,678 00
$
Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . .
1,573 00
$
Date:
20 - -
To: For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
1,575 00 1,575 00
Service Charge 2.00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
2 00 1,573 00
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . .
3. JOURNAL
PAGE
1 DATE
14
ACCOUNT TITLE
29 Miscellaneous Expense
DOC. NO.
M44
POST. REF.
2
3
GENERAL DEBIT
CREDIT
SALES CREDIT
2 00
14 5
4 CASH DEBIT
CREDIT
2 00
14
15
15
16
16
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ON YOUR OWN, p. 128
Reconciling a bank statement and recording a bank service charge 1. April 30, 20 – –
RECONCILIATION OF BANK STATEMENT
Balance On Check Stub No. 119 ___ . . . . . . . . . . . . . $
3,606 00
(Date)
3,184 00
ADD OUTSTANDING DEPOSITS:
DEDUCT BANK CHARGES: Description
$
Amount
Date
Amount
Service Charge
$
Balance On Bank Statement . . . . . . . . . . . . . . . . . .
4/29/ – – 4/30/ – –
15 00
360 00 510 00
$
Total outstanding deposits
15 00
Total bank charges
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DEDUCT OUTSTANDING CHECKS: Ck. No.
Amount
115 117 118
Ck. No.
$
Amount
70 00 313 00 80 00
463 00
Total outstanding checks
Adjusted Check Stub Balance . . . . . . . . . . . . . . . $
2.
3,591 00
NO. 119
870 00 4,054 00
Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . . . . $
3,591 00
$
Date:
20 - -
To: For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
3,606 00 3,606 00
Service Charge 15.00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
15 00 3,591 00
AMT. THIS CHECK . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . .
3. JOURNAL
PAGE
1 DATE
17
ACCOUNT TITLE
30 Miscellaneous Expense
DOC. NO.
M84
POST. REF.
2 GENERAL
DEBIT
CREDIT
1 5 00
3 SALES CREDIT
8 5
4 CASH DEBIT
CREDIT
1 5 00
17
18
18
19
19
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Name
5-3 5
Date
Class
WORK TOGETHER, p. 133
Recording dishonored checks, electronic funds transfers, and debit card purchases JOURNAL
PAGE
1 DATE
ACCOUNT TITLE
DOC. NO.
POST. REF.
2
3
GENERAL DEBIT
CREDIT
SALES CREDIT
6 5
4 CASH DEBIT
CREDIT
3
15 Accounts Rec.—Christopher Ikola
M121
7 3 00
7 3 00
3
4
16 Accounts Payable—Spinoza Enterprises M122
1 3 5 00
1 3 5 00
4
5
17 Supplies
3 1 00
3 1 00
5
M123
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
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ON YOUR OWN, p. 133
Recording dishonored checks, electronic funds transfers, and debit card purchases JOURNAL
PAGE
1 DATE
ACCOUNT TITLE
DOC. NO.
POST. REF.
2 GENERAL
DEBIT
CREDIT
3 SALES CREDIT
12 5
4 CASH DEBIT
CREDIT
15
12 Accts. Receivable—Thomas Hofski
M54
9 5 00
9 5 00
15
16
13 Accts. Payable—Alfonso Company
M55
2 4 3 00
2 4 3 00
16
17
14 Supplies
M56
6 5 00
6 5 00
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
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Name
Date
5-4
Class
WORK TOGETHER, p. 138
Establishing and replenishing a petty cash fund JOURNAL
PAGE
1 DATE
ACCOUNT TITLE
20 – –
1 2
July 3 Petty Cash 31 Supplies
3
Miscellaneous Expense
4
Repair Expense
DOC. NO.
POST. REF.
2
3
GENERAL DEBIT
CREDIT
SALES CREDIT
13 5
4 CASH DEBIT
CREDIT
C57
2 5 0 00
2 5 0 00
1
C97
2 5 00
7 8 00
2
8 00
3
4 5 00
4
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
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ON YOUR OWN, p. 138
Establishing and replenishing a petty cash fund JOURNAL
PAGE
1 DATE
ACCOUNT TITLE
20 – –
1 2
Aug. 1 Petty Cash 31 Supplies
DOC. NO.
POST. REF.
2 GENERAL
DEBIT
CREDIT
3 SALES CREDIT
15 5
4 CASH DEBIT
CREDIT
C114
2 0 0 00
2 0 0 00
1
C157
7 2 00
1 4 5 00
2
3
Advertising Expense
4 0 00
3
4
Miscellaneous Expense
3 3 00
4
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
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SECOND REVISED
Name
5-1
Date
Class
APPLICATION PROBLEM, p. 140
Endorsing and writing checks 1.
a.
b.
ENDORSE HERE X
(Student’s signature)
ENDORSE HERE
Pay to the order of
X
Vu Kim (Student’s signature)
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
RESERVED FOR FINANCIAL INSTITUTION USE
c.
ENDORSE HERE
For deposit only to
X
the account of Accounting Tutors (Student’s signature) DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE
Extra forms ENDORSE HERE
ENDORSE HERE
X
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
RESERVED FOR FINANCIAL INSTITUTION USE
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APPLICATION PROBLEM (concluded)
2., 3., 4a. $ 945.00 September 30 Williamson Street Supplies
NO. 390
20 - -
Date: To:
6,711 62 AMT. DEPOSITED . . . . 9 30 - - 1,244 25 SUBTOTAL . . . . . . . . . . . . . . . . . . . . . 7,955 87
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
7,955 87 945 00 7,010 87
September 30
Williamson Street Supplies Nine hundred forty-five and no/100
PAY TO THE ORDER OF
First National Bank
OTHER:
FOR
Supplies
390
NO.
707 Oak Street Minneapolis, MN 55447
Supplies
For:
Accounting Tutors
Minneapolis, MN 55447
$
17-432 910
-945.00 20
DOLLARS For Classroom Use Only
(Student’s Signature)
091004329 29136118
4b. $ 112.00 September 30 Spring Park Tribune
NO. 391
20 - -
Date: To:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
7,010 87 7,010 87
September 30
Spring Park Tribune One hundred twelve and no/100
PAY TO THE ORDER OF
First National Bank Minneapolis, MN 55447
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
7,010 87 112 00 6,898 87
FOR
391
NO.
707 Oak Street Minneapolis, MN 55447
Advertising
For:
Accounting Tutors
Advertising
$
17-432 910
-112.00 20
DOLLARS For Classroom Use Only
(Student’s Signature)
091004329 29136118
4c. NO. 392
$
September 30 Bryce Wilton
250.00 20 - -
Date: To: For:
NO.
707 Oak Street Minneapolis, MN 55447
Rent
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Accounting Tutors
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
6,898 87 6,898 87 6,898 87 250 00 6,648 87
102 • Working Papers TE
September 30
Bryce Wilton Two hundred fifty and no/100
PAY TO THE ORDER OF
First National Bank FOR
Rent
392
Minneapolis, MN 55447
$
17-432 910
-250.00 20
DOLLARS For Classroom Use Only
(Student’s Signature)
091004329 29136118
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Name
5-2
Date
Class
APPLICATION PROBLEM, p. 140
Reconciling a bank statement and recording a bank service charge 1. May 31, 20 – –
RECONCILIATION OF BANK STATEMENT
Balance On Check Stub No. 312 ___ . . . . . . . . . . . .
$
(Date)
1,927 00
ADD OUTSTANDING DEPOSITS:
Description
$
Amount
Date
Amount
Service Charge
$
Balance On Bank Statement . . . . . . . . . . . . . . . . . .
2,130 99
DEDUCT BANK CHARGES:
5/30/ – –
20 00
756 25
$
Total outstanding deposits
20 00
Total bank charges
$
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DEDUCT OUTSTANDING CHECKS: Ck. No.
Amount
310 311
Ck. No.
Amount
421 76 150 50
572 26
Total outstanding checks
Adjusted Check Stub Balance . . . . . . . . . . . . . .
2.
$
NO. 312
$
Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . .
2,110 99
756 25 2,683 25
2,110 99
$
Date:
20 - -
To: For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
2,130 99 2,130 99
Service Charge 20.00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
20 00 2,110 99
AMT. THIS CHECK . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . .
3. JOURNAL
PAGE
1 DATE 20 – –
1
ACCOUNT TITLE
May 31 Miscellaneous Expense
DOC. NO.
M58
POST. REF.
2 GENERAL
DEBIT
CREDIT
2 0 00
3 SALES CREDIT
10 5
4 CASH DEBIT
CREDIT
2 0 00
1
2
2
3
3
4
4
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APPLICATION PROBLEM, p. 141
Recording dishonored checks, electronic funds transfers, and debit card purchases JOURNAL
PAGE
1 DATE
ACCOUNT TITLE
DOC. NO.
POST. REF.
2 GENERAL
DEBIT
CREDIT
3 SALES CREDIT
8 5
4 CASH DEBIT
CREDIT
7
25 Accounts Rec.—Ralston Eubanks
M333
1 5 5 00
1 5 5 00
7
8
26 Accounts Pay.—Reed Rosman
M334
2 8 9 00
2 8 9 00
8
9
27 Supplies
M335
5 4 00
5 4 00
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
104 • Working Papers TE
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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Page 105
SECOND REVISED
Name
5-4
Date
Class
APPLICATION PROBLEM, p. 141
Establishing and replenishing a petty cash fund JOURNAL
PAGE
1 DATE
4 5
ACCOUNT TITLE
5 Petty Cash 30 Supplies
DOC. NO.
POST. REF.
2 GENERAL
DEBIT
CREDIT
3 SALES CREDIT
22 5
4 CASH DEBIT
CREDIT
C527
3 0 0 00
3 0 0 00
4
C555
5 7 00
1 6 5 00
5
6
Miscellaneous Expense
5 8 00
6
7
Repair Expense
4 0 00
7
8
Postage Expense
1 0 00
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
Chapter 5
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Page 106
SECOND REVISED
MASTERY PROBLEM, pp. 141, 142
Reconciling a bank statement; journalizing a bank service charge, a dishonored check, and petty cash transactions, 1., 3. JOURNAL
PAGE
1 DATE
DOC. NO.
ACCOUNT TITLE
20 – –
1
Aug. 21 Petty Cash
POST. REF.
2
3
GENERAL DEBIT
CASH
SALES CREDIT
CREDIT
20 5
4
DEBIT
CREDIT
C110
3 0 0 00
3 0 0 00
1
2
24 Repair Expense
C111
1 6 5 00
1 6 5 00
2
3
26 Supplies
C112
6 0 00
6 0 00
3
4
27 Accounts Rec.—Bruce Kassola
M33
1 7 5 00
1 7 5 00
4
5
28 Miscellaneous Expense
C113
3 1 00
3 1 00
5
6
31 James Astrup, Drawing
C114
4 0 0 00
4 0 0 00
6
7
31 Supplies
C115
1 2 5 00
2 5 5 00
7
9 10
1 3 0 00
Miscellaneous Expense
8
31
T31
31 Miscellaneous Expense
M34
8
3 5 0 00 1 5 00
3 5 0 00
9
1 5 00
10
11
11
12
12
13
13
14
14
15
15
2.
August 31, 20 – –
RECONCILIATION OF BANK STATEMENT
Balance On Check Stub No. 116 ___ . . . . . . . . . . . .
$
2,431 00
Balance On Bank Statement . . . . . . . . . . . . . . . . . .
$
Description
Amount
Date
Amount
$
8/31/ – –
15 00
$
350 00
Total outstanding deposits
15 00
Total bank charges
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DEDUCT OUTSTANDING CHECKS: Ck. No.
114 115
Amount
Ck. No.
$
Adjusted Check Stub Balance . . . . . . . . . . . . . .
$
2,416 00
350 00 3,071 00
Amount
400 00 255 00
655 00
Total outstanding checks
106 • Working Papers TE
2,721 00
ADD OUTSTANDING DEPOSITS:
DEDUCT BANK CHARGES:
Service Charge
(Date)
Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . .
$
2,416 00
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Name
5-6
Date
Class
CHALLENGE PROBLEM, p. 142
Reconciling a bank statement and recording a bank service charge 1., 2.
SECURITY NATIONAL BANK Pittsburgh, PA 15209-7634
STATEMENT OF ACCOUNT FOR
ACCOUNT NUMBER
398-24534
GolfPro 119 Matlock Street Pittsburgh, PA 15237-4403
STATEMENT DATE
August 28, 20 – –
BALANCE FROM PREVIOUS STATEMENT
NO. OF CHECKS
AMOUNT OF CHECKS
NO. OF DEPOSITS
AMOUNT OF DEPOSITS
SERVICE CHARGES
STATEMENT BALANCE
0.00
11
4,675.00
4
12,955.00
5.00
8,275.00
CHECK
DATE
08/01/– 08/01/– 08/04/– 08/08/– 08/13/– 08/15/– 08/17/– 08/18/– 08/20/– 08/22/– 08/25/– 08/27/–
– – – – – – – – – – – –
AMOUNT
CHECK
AMOUNT
BALANCE
DEPOSITS
0.00 12,000.00 10,423.00 10,348.00 9,963.00 8,588.00 8,285.00 8,145.00 7,895.00 8,465.00 8,280.00 8,275.00
12,000.00 151 152 154 153 155 160 157
1,577.00 200.00 250.00 1,560.00 205.00 140.00 250.00
162 SC
185.00 5.00
125.00 156 158 159
135.00 75.00 98.00
260.00
570.00
PLEASE EXAMINE AT ONCE 䊉 IF NO ERRORS ARE REPORTED WITHIN 10 DAYS THE ACCOUNT WILL BE CONSIDERED CORRECT. REFER ANY DISCREPANCY TO OUR ACCOUNTING DEPARTMENT IMMEDIATELY.
GolfPro
PAY TO THE ORDER OF
Montag Company
119 Matlock Street Pittsburgh, PA 15237–4403
Plain Company
8-17 430
152
Thomson Company
GolfPro 119 Matlock Street Pittsburgh, PA 15237–4403
Metro Insurance Co.
GolfPro
8-17 430
PAY TO THE ORDER OF
City Electric Company
GolfPro 119 Matlock Street Pittsburgh, PA 15237–4403
Patterson Supplies One hundred thirty - five dollars
PAY TO THE ORDER OF
8-17 430
8-17 430
155
8-17 430
August 10, - 135.00 00
XX
$
162
NO.
8-17 430
August 22, - 185.00 20
Dowd Company One hundred eighty - five dollars
$
00
XX
DOLLARS
SECURITY NATIONAL BANK Pittsburgh, PA 15209-7634
20
$
Tri-State Agency
PAY TO THE ORDER OF
$
156
20
119 Matlock Street Pittsburgh, PA 15237–4403
20
8-17 430
160
August 15, - 140.00
GolfPro
August 10, - 205.00
$
NO.
PAY TO THE ORDER OF
$
NO.
Ace Cleaning Company
119 Matlock Street Pittsburgh, PA 15237–4403
20
8-17 430
159
August 15, - 98.00 20
GolfPro
August 8, - 250.00
$
-75.00 20
NO.
PAY TO THE ORDER OF
$
154
Pennsylvania Telephone Co.
8-17 430
158
NO.
August 14,
119 Matlock Street Pittsburgh, PA 15237–4403
20
NO.
119 Matlock Street Pittsburgh, PA 15237–4403
$
GolfPro
August 8, - 1,560.00 NO.
John Walker
PAY TO THE ORDER OF
$
153
20
119 Matlock Street Pittsburgh, PA 15237–4403
20
NO.
119 Matlock Street Pittsburgh, PA 15237–4403
August 13, - 250.00
GolfPro
August 5, - 200.00
GolfPro
PAY TO THE ORDER OF
PAY TO THE ORDER OF
$
8-17 430
157
NO.
119 Matlock Street Pittsburgh, PA 15237–4403
20
NO.
PAY TO THE ORDER OF
GolfPro
August 1, - 1,577.00
GolfPro
PAY TO THE ORDER OF
8-17 430
151
NO.
119 Matlock Street Pittsburgh, PA 15237–4403
FOR
John Walker
payment on account
043000177 39824534
DOLLARS
SECURITY NATIONAL BANK Pittsburgh, PA 15209-7634
FOR
payment on account
John Walker
043000177 39824534
Chapter 5
Cash Control Systems • 107
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Page 108
SECOND REVISED
CHALLENGE PROBLEM (continued)
1., 2., 4. NO. 151
✔
$
August 1, Montag Company
1,577.00
NO. 152
Date: To:
20 - -
To:
Supplies
For:
0 00 8 1 - - 12,000 00 SUBTOTAL . . . . . . . . . . . . . . . . . . . . . 12,000 00 AMT. DEPOSITED . . . .
Date
OTHER:
12,000 00 1,577 00 BAL. CAR’D. FOR’D. . . . . . . . . . . . . . 10,423 00
$
200.00
NO. 153
✔
20 - -
AMT. DEPOSITED . . . .
10,423 00
$
1,560.00
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
20 - -
Supplies
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . .
✔
August 8, Thomson Company
Date: To:
Rent
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . .
✔
August 5, Plain Company
Date:
8 8 -Date
10,423 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
10,423 00 200 00 BAL. CAR’D. FOR’D. . . . . . . . . . . . . . 10,223 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
AMT. THIS CHECK . . . . . . . . . . . . . . .
AMT. THIS CHECK . . . . . . . . . . . . . . .
AMT. THIS CHECK . . . . . . . . . . . . . . .
$ 250.00 ✔ August 8, Metro Insurance Company
To:
20 - -
BAL. BRO’T. FOR’D. . . . . . . . . . . . . AMT. DEPOSITED . . . .
8,788 00
Date: To:
8,538 00
BAL. BRO’T. FOR’D. . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
20 - -
Payment on account
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
20 - -
Utilities
For:
✔ $ 135.00 August 10, Patterson Supplies
10,348 00 1,560 00 8,788 00
NO. 156
Date: To:
Insurance
For:
$ 205.00 ✔ August 10, City Electric Company
NO. 155
NO. 154 Date:
BAL. CAR’D. FOR’D. . . . . . . . . . . . .
10,223 00 125 00 10,348 00
Date
8,333 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
8,788 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
8,538 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
8,333 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
8,788 00 250 00 8,538 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
8,538 00 205 00 8,333 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
8,333 00 135 00 8,198 00
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
NO. 157
✔
August 13, John Walker
$
250.00
For:
20 - -
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . Date
✔ $ 75.00 August 14, Pennsylvania Telephone Company
Date: To:
Owner’s withdrawal
AMT. DEPOSITED . . . .
BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
8,198 00
20 - -
BAL. CAR’D. FOR’D. . . . . . . . . . . . .
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . Date
✔ $ 98.00 August 15, Ace Cleaning Company
Date: To:
Utilities
AMT. DEPOSITED . . . .
AMT. THIS CHECK . . . . . . . . . . . . . .
NO. 159
NO. 158
Date: To:
AMT. THIS CHECK . . . . . . . . . . . . . . .
7,948 00
20 - -
Cleaning
BAL. BRO’T. FOR’D. . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
7,873 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . OTHER:
8,198 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
7,948 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
7,873 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
8,198 00 250 00 7,948 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
7,948 00 75 00 7,873 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
7,873 00 98 00 7,775 00
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . .
108 • Working Papers TE
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
✔
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Page 109
SECOND REVISED
Name
5-6
Date
Class
CHALLENGE PROBLEM (continued)
1., 2., 4. $ 140.00 ✔ August 15, Tri-State Agency
To:
To:
7,775 00 8 15 - - 260 00 SUBTOTAL . . . . . . . . . . . . . . . . . . . . . 8,035 00 AMT. DEPOSITED . . . .
Date
OTHER:
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . .
NO. 163
$
August 23, Jason North
17.00
Date:
For:
8,035 00 140 00 7,895 00
Date
7,905 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
7,905 00 17 00 7,888 00
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
Payment on account
BAL. BRO’T. FOR’D. . . . . . . . . . . . . AMT. DEPOSITED . . . .
8 22 - Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
7,895 00 375 00 7,520 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
August 28, John Walker
$
7,520 00 570 00 8,090 00
8,090 00 185 00 BAL. CAR’D. FOR’D. . . . . . . . . . . . . . 7,905 00 AMT. THIS CHECK . . . . . . . . . . . . . . .
250.00
NO. 165 20 - -
Date:
$ 20 - -
Date: To:
Owner’s withdrawal
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . . . AMT. DEPOSITED . . . .
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
20 - -
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
For:
7,905 00
Date
185.00
7,895 00
To:
BAL. BRO’T. FOR’D. . . . . . . . . . . . .
To:
7,895 00
$
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
NO. 164 20 - -
Miscellaneous
AMT. DEPOSITED . . . .
AMT. DEPOSITED . . . .
✔
August 22, Dowd Company
Date:
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . .
✔
NO. 162 20 - -
Advertising
For:
BAL. BRO’T. FOR’D. . . . . . . . . . . . .
To:
Date:
20 - -
Miscellaneous
For:
$ 375.00 August 19, Pittsburgh Enquirer
NO. 161
NO. 160 Date:
8 28 - Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . . . .
7,888 00 430 00 8,318 00
BAL. BRO’T. FOR’D. . . . . . . . . . . . . AMT. DEPOSITED . . . .
Date
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . OTHER:
Service Charge 5.00 Dishonored check 175.00
8,318 00 250 00 8,068 00
SUBTOTAL . . . . . . . . . . . . . . . . . . . . .
8,068 00 8,068 00 180 00 7,888 00
AMT. THIS CHECK . . . . . . . . . . . . . . . BAL. CAR’D. FOR’D. . . . . . . . . . . .
Chapter 5
Cash Control Systems • 109
✔
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SECOND REVISED
CHALLENGE PROBLEM (concluded)
2.
August 29, 20 – –
RECONCILIATION OF BANK STATEMENT
Balance On Check Stub No. 165 ___ . . . . . . . . . . . .
$
Balance On Bank Statement . . . . . . . . . . . . . . . . . .
8,068 00
$
8,275 00
ADD OUTSTANDING DEPOSITS:
DEDUCT BANK CHARGES: Description
Service Charge
(Date)
Amount
Date
Amount
$
8/28/ – –
5 00
430 00
$
Total outstanding deposits
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DEDUCT OUTSTANDING CHECKS:
5 00
Total bank charges
Ck. No.
Ck. No.
Amount
161 163 164
430 00 8,705 00
$
Amount
375 00 17 00 250 00
642 00
Total outstanding checks
Adjusted Check Stub Balance . . . . . . . . . . . . . .
$
Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . .
8,063 00
$
8,063 00
3. JOURNAL
PAGE
1 DATE
ACCOUNT TITLE
20 – –
1 2
DOC. NO.
POST. REF.
2 GENERAL
DEBIT
CREDIT
3 SALES CREDIT
8 5
4 CASH DEBIT
CREDIT
M25
5 00
5 00
1
1 Accounts Rec.—Sheldon Martindale M26
1 7 5 00
1 7 5 00
2
Sept. 1 Miscellaneous Expense
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
110 • Working Papers TE
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING