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ACC 291T Week 3 Apply: Connect® Exercise (2019 Latest)

ACC 291T Week 3 Apply: Connect® Exercise (2019 Latest)

Review the Knowledge Check in preparation for this assignment.

Complete the Week 3 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date

Di Stefano Office Supply Company received a bank statement showing a balance of $67,905 as of March 31, 2019. The firm’s records showed a book balance of $69,475 on March 31. The difference between the two balances was caused by the following items.

1. A debit memorandum for $48, which covers the bank’s collection fee for the note (item 6).

2. A deposit in transit of $3,600.

3. A check for $246 issued by another firm that was mistakenly charged to Di Stefano’s account.

4. A debit memorandum for an NSF check of $6,125 issued by Wozniak Construction Company, a credit customer.

5. Outstanding checks: Check 3782 for $2,100; Check 3840 for $149.

6. A credit memorandum for a $6,200 noninterest-bearing note receivable that the bank collected for the firm.

Prepare a bank reconciliation statement for the firm as of March 31. Prepare the necessary journal entries for March 31, 2019 from the statement.

A firm’s bank reconciliation statement shows a book balance of $15,760, an NSF check of $370, and a service charge of $17. Its adjusted book balance is

Multiple Choice

$16,147.

$15,407.

$15,373.

$16,113.

On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,680. The balance in the firm’s checkbook and Cash account on the same date was $9,958. The difference between the two balances is caused by the items listed below.

a. A $2,805 deposit made on March 30 does not appear on the bank statement.

b. Check 358 for $450 issued on March 29 and Check 359 for $1,580 issued on March 30 have not yet been paid by the bank.

c. A credit memorandum shows that the bank has collected a $1,300 note receivable and interest of $130 for the firm.

d. A service charge of $18 appears on the bank statement.

e. A debit memorandum shows an NSF check for $490. (The check was issued by Dane Jaris, a credit customer.)

f. The firm’s records indicate that Check 341 of March 1 was issued for $700 to pay the month’s rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $600.

g. The bank made an error by deducting a check for $525 issued by another business from the balance of Home Decorating Pavilion’s account.

Required:

1. Prepare a bank reconciliation statement for the firm as of March 31, 2019.

2. Record entries for any items on the bank reconciliation statement that must be journalized.

On January 2, The Public Legal Clinic issued Check 2108 for $400 to establish a petty cash fund. Indicate how this transaction would be recorded in a general journal.

On January 2, Jasmine’s Beauty Supplies Inc. issued Check 3100 for $300 to establish a petty cash fund. On January 31, Check 3159 was issued to replenish the petty cash fund. An analysis of payments from the fund showed these totals: Supplies, $52; Delivery Expense, $93; and Miscellaneous Expense, $28.

Indicate how these transactions would be recorded in a general journal.

Northwest Gift Shop, a retail business, started business on April 29, 2019. It keeps a $300 change fund in its cash register. The cash receipts for the period from April 29 to April 30, 2019, are shown below.

DATE TRANSACTIONS

April 29 Cash sales per the cash register tape, $1,516.

Cash count, $1,807.

30 Cash sales per the cash register tape, $1,423.

Cash count, $1,725.

Record the cash receipts on April 29 and April 30, 2019, in a general journal.

Read the following transactions.

Lourdes LLC. keeps a $100 change fund in its cash register. At the end of the day, cash sales per the register tape were $2,650. The cash count was $3,000.

Calculate the amount over or short.

Read each of the following transactions.

1. A) The cash sales per a register tape were $565. The cash count is $545.

B) The cash sales per a register tape were $8,000. The cash count is $7,650.

Prepare the general journal entries to record the above transactions.

After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company’s checking account online. The activity for the last three days follows.

Business Checking Account #123456-987

Date Type Description Additions Payments Balance

09/24/2019 Loan Payment Online Transfer to CM XXXX $ 3,900.00 $ 16,075.06

09/24/2019 Deposit DEPOSIT ID NUMBER 8888 $ 2,309.60 $ 19,975.06

09/23/2019 Check CHECK #1554 (view) $ 3,900.00 $ 17,665.46

09/23/2019 Bill Payment Online Payment $ 40.05 $ 21,565.46

09/22/2019 Check CHECK #1553 (view) $ 280.00 $ 21,605.51

09/22/2019 Check CHECK #1551 (view) $ 1,790.00 $ 21,885.51

09/22/2019 ACH Credit Edwards UK AP PAYMENT $ 9,300.00 $ 23,675.51

09/22/2019 ATM ATM WITHDRAWAL $ 280.00 $ 14,375.51

________________________________________

After matching these transactions to the company’s Cash account in the general ledger, Johanna noted the following unrecorded transactions:

1. The ATM withdrawal on 9/22/2019 was for personal use by the owner, Robert Savage.

2. The ACH credit on 9/22/2019 was an electronic funds payment received on account from Edwards UK, a credit customer located in Great Britain.

3. The bill payment made 9/23/2019 was to Waste Control Trash Services (utilities).

4. The loan payment on 9/24/2019 was an automatic debit by Central Motors for the company’s monthly payment on a loan for its automobiles. The loan does not bear interest.

Prepare the journal entries in a general journal to record the four transactions above. (Round your answers to 2 decimal places.)

Florence Company received a bank statement showing a balance of $12,700 on November 30, 2019. During the bank reconciliation process, Florence’s accountant noted the following bank errors:

1. A check for $150 issued by Florentine, Inc., was mistakenly charged to Florence Company’s account.

2. Check 2782 was written for $100 but was paid by the bank as $1,100.

3. Check 2920 for $84 was paid by the bank twice.

4. A deposit for $670 on November 22 was credited by the bank for $760.

Assuming outstanding checks total $2,050, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.

You will get a DOC (1MB) file

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