The following information is available to reconcile Clark Company’s book balance of cash with its bank statement cash balance as of July 31, 2011. a. On July 31, the company’s Cash account has a $25,754 debit balance, but its July bank statement shows a $27,860 cash balance. b. Check No. 3031 for $1,430 and Check No. 3040 for $707 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $491 and Check No. 3069 for $2,198, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,220 but was erroneously entered in the accounting records as $1,210. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $7,000 cash on a non-interest-bearing note for Clark, deducted a $35 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF. f. Enclosed with the July statement is a $11 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. g. Clark’s July 31 daily cash receipts of $8,152 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.

The following information is available to reconcile Clark Company’s book balance of cash with its bank statement cash balance as of July 31, 2011.

  

a.	On July 31, the company’s Cash account has a $25,754 debit balance, but its July bank statement shows a $27,860 cash balance.
b.	Check No. 3031 for $1,430 and Check No. 3040 for $707 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $491 and Check No. 3069 for $2,198, both written in July, are not among the canceled checks on the July 31 statement.
c.	In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,220 but was erroneously entered in the accounting records as $1,210.
d.	A credit memorandum enclosed with the July bank statement indicates the bank collected $7,000 cash on a non-interest-bearing note for Clark, deducted a $35 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.
e.	A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f.	Enclosed with the July statement is a $11 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g.	Clark’s July 31 daily cash receipts of $8,152 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.

Required:
1.	Prepare the bank reconciliation for this company as of July 31, 2011. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2011.

Shelton Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier. 5 Purchased bond paper for the copier for $16.55 that is immediately used. 9 Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Shelton uses the perpetual system to account for merchandise inventory. 12 Paid $7.55 postage to express mail a contract to a client. 14 Reimbursed Alli Buck, the manager, $73 for business mileage on her car. 20 Purchased stationery for $68.87 that is immediately used. 23 Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $12.00 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $58 for postage expenses. 28 The fund had $25.52 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. 28 The petty cash fund amount is increased by $140 to a total of $490.

Shelton Gallery had the following petty cash transactions in February of the current year.

Feb.	2		Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier.
	5		Purchased bond paper for the copier for $16.55 that is immediately used.
	9		Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Shelton uses the perpetual system to account for merchandise inventory.
	12		Paid $7.55 postage to express mail a contract to a client.
	14		Reimbursed Alli Buck, the manager, $73 for business mileage on her car.
	20		Purchased stationery for $68.87 that is immediately used.
	23		Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination.
	25		Paid $12.00 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
	27		Paid $58 for postage expenses.
	28		The fund had $25.52 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
	28		The petty cash fund amount is increased by $140 to a total of $490.

Prepare the journal entry to establish the petty cash fund.

Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenditures in each category. (Round your answers to 2 decimal places.)
 

Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.)

 

Frederick Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows a $13,764 debit balance. Frederick Clinic's June 30 bank statement shows $12,441 on deposit in the bank. a. Outstanding checks as of June 30 total $1,780. b. The June 30 bank statement included a $95 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for $484 in payment of a utility bill on June 15. Frederick Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $508. d. The June 30 cash receipts of $3,032 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Prepare the adjusting journal entries that Frederick Clinic must record as a result of the items listed above used to prepare a bank reconciliation. (If no journal entry is required, select "No journal entry required" in the first account field.)

Frederick Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows a $13,764 debit balance. Frederick Clinic's June 30 bank statement shows $12,441 on deposit in the bank.

 

a.	Outstanding checks as of June 30 total $1,780.
b.	The June 30 bank statement included a $95 debit memorandum for bank services.
c.	Check No. 919, listed with the canceled checks, was correctly drawn for $484 in payment of a utility bill on June 15. Frederick Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $508.
d.	The June 30 cash receipts of $3,032 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.

 

Prepare the adjusting journal entries that Frederick Clinic must record as a result of the items listed above used to prepare a bank reconciliation. (If no journal entry is required, select "No journal entry required" in the first account field.)