Study Guide Name Identifying Accounting Terms Analyzing Transactions in a Cash Control System Identifying Accounting Concepts and Practices Total Perfect Score Pts. Pts. 20 Pts. Pts. Your Score 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 I A. bank statement B. blank endorsement C. checking account D. code of conduct E. debit card Column II 1. A statement that guides the ethical behavior of a company and its employees. (p. ) 2. A bank account from which payments can be ordered by a depositor. (p. ). A signature or stamp on the back of a check, transferring ownership. (p. 0). An endorsement consisting only of the endorser s signature. (p. 0). An endorsement indicating a new owner of a check. (p. 0) Answers 1. D 2. C. H. B. M F. dishonored check G. electronic funds transfer H. endorsement I. petty cash. An endorsement restricting further transfer of a check s ownership. (p. 0). A check with a future date on it. (p. 1). A report of deposits, withdrawals, and bank balances sent to a depositor by a bank. (p. ). A check that a bank refuses to pay. (p. ). L. K. A. F J. petty cash slip K. postdated check L. restrictive endorsement M. special endorsement. A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents. (p. 1). A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder. (p. 2). An amount of cash kept on hand and used for making small payments. (p. ). A form showing proof of a petty cash payment. (p. ). G. E. I. J COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING Chapter
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 Transactions 1 2. Received bank statement showing bank service charge. (p. ). Received notice from a bank of a dishonored check from R. Sandell. (p. 0). Paid cash on account to Suburban Office Supplies using EFT. (p. 1). Purchased supplies using a debit card. (p. 2). Paid cash to establish a petty cash fund. (p. ). Paid cash to replenish a petty cash fund: $.00; supplies, $.0; miscellaneous expense, $.0. (p. ) Answers Debit Credit 1. F 2. A. C. A. E. A. D. A. B. A. D, F. A 0 Working Papers TE CENTURY 21 ACCOUNTING, TH EDITION
Name 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. 1. Because cash transactions occur more frequently than other transactions, the chances for making recording errors affecting cash are less. (p. ) 2. When a deposit is made in a bank account, the bank issues a receipt. (p. ). There are four types of endorsements commonly used: blank, special, original, and restrictive. (p. 0). A check with a blank endorsement can be cashed by anyone who has possession of the check. (p. 0). When writing a check, the first step is to prepare the check stub. (p. 1). Most banks do not look at the date the check is written and will withdraw money from the depositor s account anytime. (p. 1). The amount of a check is written twice on each check. (p. 1). A check that contains errors must be marked with the word VOID and another check must be written. (p. 2). An important aspect of cash control is verifying that the information on a bank statement and a checkbook are in agreement. (p. ). An outstanding check is one that has been issued but not yet reported on a bank statement by the bank. (p. ). Banks deduct service charges from customers checking accounts without requiring customers to write a check for the amount. (p. ). 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. ). 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. 1). The source document for an electronic funds transfer is a memorandum. (p. 1) 1. The source document for a debit card purchase is a memorandum. (p. 2). TechKnow Consulting maintains a petty cash fund for making large cash payments without writing checks. (p. ). Businesses use petty cash when writing a check is not time or cost effective. (p. ) Answers 1. F 2. T. F. T. T. F. T. T. T. T. T. T. F. T 1. T. F. T 1. A memorandum is the source document for the entry to record establishing a petty cash fund. (p. ) 1. Anytime a payment is made from the petty cash fund, a petty cash slip is prepared showing proof of a petty cash payment. (p. ) 20. When the petty cash fund is replenished, the balance of the petty cash account increases. (p. ) 1. F 1. T 20. F COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING Chapter 1
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 0 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. :0 :0 study :0 :0 dinner :0 :0 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. 2 Working Papers TE CENTURY 21 ACCOUNTING, TH EDITION
Name Class -1 WORK TOGETHER, p. Endorsing and writing checks 1. a. ENDORSE HERE X (Student s signature) b. ENDORSE HERE X Pay to the order of Kelsey Sather (Student s signature) DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE c. ENDORSE HERE X For deposit only to the account of Balsam Lake Accounting (Student s signature) DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE 2.,., a. $ 2.00 : October 0 20 - - Corner Garage BAL. BRO T. FOR D.............. 0 - - 00 SUBTOTAL..................... 2,2 Repairs SUBTOTAL..................... 2,2 AMT. THIS CHECK............... 2 00 BAL. CAR D. FOR D.............. 2,2 Balsam Lake Accounting Main Street Balsam Lake, WI -2 FOR Peoples national bank Balsam Lake, WI 002 21-1 October 0 20 - - Corner Garage 2.00 One hundred sixty-two and no/0 Repairs For Classroom Use Only Student s Signature DOLLARS b. $ 2.00 : October 0 20 - - St. Croix Supply BAL. BRO T. FOR D.............. 2,2 SUBTOTAL..................... 2,2 Supplies SUBTOTAL..................... 2,2 AMT. THIS CHECK............... 2 00 BAL. CAR D. FOR D.............. 2,00 Balsam Lake Accounting Main Street Balsam Lake, WI -2 FOR Peoples national bank Balsam Lake, WI 002 21-1 October 0 20 - - St. Croix Supply 2.00 Ninety-two and no/0 Supplies For Classroom Use Only Student s Signature DOLLARS Chapter Cash Control Systems
-1 ON YOUR OWN, p. Endorsing and writing checks 1. a. ENDORSE HERE X Pay to the order of b. ENDORSE HERE X For deposit only to Kenneth Burleson the account of (Student s signature) Centuria Hair Care (Student s signature) DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE 2.,., a. $.00 : May 1 20 - - Uniforms Plus BAL. BRO T. FOR D.............. 2, 1 - - 2 SUBTOTAL..................... 2,2 Uniform Rental SUBTOTAL..................... 2,2 AMT. THIS CHECK............... 00 BAL. CAR D. FOR D.............. 2,20 CENTURIA HAIR CARE 0 State Street Centuria, WI 2-2 FOR County Bank Dresser, WI 00 002 21 For Classroom Use Only - 1 May 1 20 - - Uniforms Plus.00 Three hundred fifty-five and no/0 Uniform rental DOLLARS (Student s Signature) b. $.00 : May 1 20 - - HairWorld BAL. BRO T. FOR D.............. 2,20 SUBTOTAL..................... 2,20 Supplies SUBTOTAL..................... 2,20 AMT. THIS CHECK............... 00 BAL. CAR D. FOR D.............. 1, CENTURIA HAIR CARE 0 State Street Centuria, WI 2-2 FOR County Bank Dresser, WI 00 002 21 For Classroom Use Only - 1 May 1 20 - - HairWorld.00 Four hundred twelve and no/0 Supplies DOLLARS (Student s Signature) Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class -2 WORK TOGETHER, p. Reconciling a bank statement and recording a bank service charge 1. RECONCILIATION OF BANK STATEMENT July 2, 20 () Balance On Check Stub No............. $ 1, 00 Balance On Bank Statement.................. $ DEDUCT BANK CHARGES: ADD OUTSTANDING DEPOSITS: Description Service Charge $ 2 00 /2/ $ 00 1,2 00 Total bank charges 2 00 Total outstanding deposits SUBTOTAL............................... DEDUCT OUTSTANDING CHECKS: $ 00 1, 00 Ck. No. Ck. No. 0 00 00 Total outstanding checks Adjusted Check Stub Balance.............. $ Adjusted Bank Balance...................... $ 1, 00 00 1, 00 2. $ : 20 - - BAL. BRO T. FOR D.............. 1, 00 SUBTOTAL..................... 1, 00 Service Charge 2.00 2 00 SUBTOTAL..................... 1, 00 AMT. THIS CHECK............... BAL. CAR D. FOR D............. JOURNAL 1 2 PAGE DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 2 Miscellaneous Expense M 200 200 1 Chapter Cash Control Systems
-2 ON YOUR OWN, p. Reconciling a bank statement and recording a bank service charge 1. RECONCILIATION OF BANK STATEMENT April 0, 20 () Balance On Check Stub No.............. $,0 00 Balance On Bank Statement.................. $ DEDUCT BANK CHARGES: Description Service Charge $ 1 00 Total bank charges 1 00 ADD OUTSTANDING DEPOSITS: /2/ /0/ $ Total outstanding deposits SUBTOTAL.................................. DEDUCT OUTSTANDING CHECKS: 0 00 00 $,1 00 0 00,0 00 Ck. No. Ck. No. 1 0 00 00 0 00 Total outstanding checks Adjusted Check Stub Balance............... $ Adjusted Bank Balance........................ $,1 00 00,1 00 2. $ : 20 - - BAL. BRO T. FOR D..............,0 00 SUBTOTAL.....................,0 00 Service Charge 1.00 1 00 SUBTOTAL.....................,1 00 AMT. THIS CHECK.............. BAL. CAR D. FOR D............. JOURNAL 1 2 PAGE DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 0 Miscellaneous Expense M 0 0 1 1 1 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class - WORK TOGETHER, p. Recording dishonored checks, electronic funds transfers, and debit card purchases JOURNAL 1 2 PAGE DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 Accounts Rec. Christopher Ikola M1 00 00 Accounts Payable Spinoza Enterprises M2 00 00 Supplies M 0 0 1 1 1 1 Chapter Cash Control Systems
- ON YOUR OWN, p. Recording dishonored checks, electronic funds transfers, and debit card purchases JOURNAL 1 2 PAGE DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 Accts. Receivable Thomas Hofski M 00 00 1 Accts. Payable Alfonso Company M 200 200 Supplies M 00 00 1 1 1 1 20 20 21 21 22 22 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class - WORK TOGETHER, p. Establishing and replenishing a petty cash fund JOURNAL 1 2 PAGE DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 2 20 July Petty Cash 1 Supplies C C 2000 200 2000 00 1 2 Miscellaneous Expense 00 Repair Expense 00 1 1 Chapter Cash Control Systems
- ON YOUR OWN, p. Establishing and replenishing a petty cash fund JOURNAL 1 2 PAGE 1 DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 2 20 Aug. 1 Petty Cash 1 Supplies C1 C 20000 200 20000 00 1 2 Advertising Expense 000 Miscellaneous Expense 00 1 1 0 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class -1 APPLICATION PROBLEM, p. 0 Endorsing and writing checks 1. a. ENDORSE HERE b. ENDORSE HERE X (Student s signature) X Pay to the order of Vu Kim (Student s signature) DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE c. ENDORSE HERE X For deposit only to 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 X ENDORSE HERE X DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE Chapter Cash Control Systems 1
-1 APPLICATION PROBLEM (concluded) 2.,., a. 0 $.00 : September 0 20 - - Williamson Street Supplies BAL. BRO T. FOR D.............., 2 0 - - 1,2 2 SUBTOTAL....................., Supplies SUBTOTAL....................., AMT. THIS CHECK............... 00 BAL. CAR D. FOR D..............,0 Accounting Tutors 0 Oak Street Minneapolis, MN 0-2 September 0 20 - - Williamson Street Supplies.00 Nine hundred forty-five and no/0 FOR First National Bank Minneapolis, MN Supplies 002 21 For Classroom Use Only DOLLARS (Student s Signature) b. 1 $ 1.00 : September 0 20 - - Spring Park Tribune BAL. BRO T. FOR D..............,0 SUBTOTAL.....................,0 Advertising SUBTOTAL.....................,0 AMT. THIS CHECK............... 1 00 BAL. CAR D. FOR D.............., Accounting Tutors 0 Oak Street Minneapolis, MN 1-2 September 0 20 - - Spring Park Tribune 1.00 One hundred twelve and no/0 FOR First National Bank Minneapolis, MN Advertising 002 21 For Classroom Use Only DOLLARS (Student s Signature) c. 2 $ 20.00 : September 0 20 - - Bryce Wilton BAL. BRO T. FOR D.............., SUBTOTAL....................., Rent SUBTOTAL....................., AMT. THIS CHECK............... 20 00 BAL. CAR D. FOR D.............., Accounting Tutors 0 Oak Street Minneapolis, MN 2-2 September 0 20 - - Bryce Wilton 20.00 Two hundred fifty and no/0 FOR First National Bank Minneapolis, MN Rent 002 21 For Classroom Use Only DOLLARS (Student s Signature) 2 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class -2 APPLICATION PROBLEM, p. 0 Reconciling a bank statement and recording a bank service charge 1. RECONCILIATION OF BANK STATEMENT May 1, 20 () Balance On Check Stub No............. $ 2,0 Balance On Bank Statement.................. $ DEDUCT BANK CHARGES: ADD OUTSTANDING DEPOSITS: Description Service Charge $ 20 00 /0/ $ 2 1,2 00 Total bank charges 20 00 Total outstanding deposits SUBTOTAL............................... DEDUCT OUTSTANDING CHECKS: $ 2 2, 2 Ck. No. Ck. No. 21 0 Total outstanding checks Adjusted Check Stub Balance.............. $ Adjusted Bank Balance...................... $ 2,1 2 2 2,1 2. $ : 20 - - BAL. BRO T. FOR D.............. 2,0 SUBTOTAL..................... 2,0 Service Charge 20.00 20 00 SUBTOTAL..................... 2,1 AMT. THIS CHECK............. BAL. CAR D. FOR D............. 1 2 DATE ACCOUNT TITLE DOC. 20 May 1 Miscellaneous Expense M POST. REF. JOURNAL 1 2 GENERAL SALES PAGE CASH 2000 2000 1 2 Chapter Cash Control Systems
- APPLICATION PROBLEM, p. 1 Recording dishonored checks, electronic funds transfers, and debit card purchases JOURNAL 1 2 PAGE DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 2 Accounts Rec. Ralston Eubanks M 0 0 2 Accounts Pay. Reed Rosman M 200 200 2 Supplies M 00 00 1 1 1 1 1 1 20 20 21 21 22 22 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class - APPLICATION PROBLEM, p. 1 Establishing and replenishing a petty cash fund JOURNAL 1 2 PAGE 22 DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH Petty Cash C2 0000 0000 0 Supplies C 00 00 Miscellaneous Expense 00 Repair Expense 000 Postage Expense 00 1 1 1 1 1 1 20 20 Chapter Cash Control Systems
- MASTERY PROBLEM, pp. 1, 2 Reconciling a bank statement; journalizing a bank service charge, a dishonored check, and petty cash transactions, 1.,. JOURNAL 1 2 PAGE 20 DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 20 Aug. 21 Petty Cash C1 0000 0000 1 2 2 Repair Expense C1 00 00 2 2 Supplies C1 000 000 2 Accounts Rec. Bruce Kassola M 00 00 2 Miscellaneous Expense C1 0 0 1 James Astrup, Drawing C1 0000 0000 1 Supplies C 00 200 1 Miscellaneous Expense T1 000 0 00 0 00 1 Miscellaneous Expense M 0 0 1 1 2. RECONCILIATION OF BANK STATEMENT August 1, 20 () Balance On Check Stub No. 1............ $ 2,1 00 Balance On Bank Statement.................. $ DEDUCT BANK CHARGES: ADD OUTSTANDING DEPOSITS: Description Service Charge $ 1 00 /1/ $ 0 00 2,21 00 Total bank charges 1 00 Total outstanding deposits SUBTOTAL............................... DEDUCT OUTSTANDING CHECKS: $ 0 00,01 00 Ck. No. Ck. No. 1 00 00 2 00 Total outstanding checks Adjusted Check Stub Balance.............. $ Adjusted Bank Balance...................... $ 2, 00 00 2, 00 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class - CHALLENGE PROBLEM, p. 2 Reconciling a bank statement and recording a bank service charge 1., 2. SECURITY NATIONAL BANK Pittsburgh, PA 0- STATEMENT OF ACCOUNT FOR Matlock Street Pittsburgh, PA -0 ACCOUNT NUMBER -2 STATEMENT DATE August 2, 20 BALANCE FROM PREVIOUS STATEMENT OF CHECKS AMOUNT OF CHECKS OF DEPOSITS AMOUNT OF DEPOSITS SERVICE CHARGES STATEMENT BALANCE 0.00,.00,.00.00,2.00 DATE CHECK AMOUNT CHECK AMOUNT DEPOSITS BALANCE 0/01/ 0/01/ 0/0/ 0/0/ 0// 0/1/ 0// 0/1/ 0/20/ 0/22/ 0/2/ 0/2/ 1 0 2 SC 1,.00 200.00 20.00 1,0.00 20.00 0.00 20.00 1.00.00 1 1.00.00.00,000.00.00 20.00 0.00 0.00,000.00,2.00,.00,.00,.00,2.00,.00,.00,.00,20.00,2.00 PLEASE EXAMINE AT ONCE IF NO ERRORS ARE REPORTED WITHIN DAYS THE ACCOUNT WILL BE CON- SIDERED CORRECT. REFER ANY DISCREPANCY TO OUR ACCOUNTING DEPARTMENT IMMEDIATELY. Matlock Street Pittsburgh, PA 0-0 August 1, 20 - - Montag Company 1,.00 Matlock Street Pittsburgh, PA 0-0 August, 20 - - Plain Company 200.00 Matlock Street Pittsburgh, PA 0-0 August, 20 - - Thomson Company 1,0.00 Matlock Street Pittsburgh, PA 0-0 August, 20 - - Metro Insurance Co. 20.00 Matlock Street Pittsburgh, PA 0 1-0 August, 20 - - City Electric Company 20.00 Matlock Street Pittsburgh, PA 0 One hundred thirty - five dollars SECURITY NATIONAL BANK Pittsburgh, PA 0- FOR payment on account 0000 2-0 August, 20 - - Patterson Supplies.00 00 XX John Walker DOLLARS Matlock Street Pittsburgh, PA 0-0 August, 20 - - John Walker 20.00 Matlock Street Pittsburgh, PA 0 1-0 August, 20 - - Pennsylvania Telephone Co..00 Matlock Street Pittsburgh, PA 0 1-0 August 1, 20 - - Ace Cleaning Company.00 Matlock Street Pittsburgh, PA 0 0-0 August 1, 20 - - Tri-State Agency 0.00 Matlock Street Pittsburgh, PA 0 One hundred eighty - five dollars SECURITY NATIONAL BANK Pittsburgh, PA 0- FOR payment on account 0000 2 2-0 August 22, 20 - - Dowd Company 1.00 00 XX John Walker DOLLARS Chapter Cash Control Systems
- CHALLENGE PROBLEM (continued) 1., 2.,. $ : 20 - - 1,.00 August 1, Montag Company $ : 20 - - August, Plain Company 200.00 $ : 20 - - 1,0.00 August, Thomson Company Supplies Rent Supplies BAL. BRO T. FOR D.............. 0 00 1 - -,000 00 SUBTOTAL.....................,000 00 BAL. BRO T. FOR D..............,2 00 SUBTOTAL.....................,2 00 BAL. BRO T. FOR D..............,22 00 - - 00 SUBTOTAL....................., 00 SUBTOTAL.....................,000 00 AMT. THIS CHECK............... 1, 00 BAL. CAR D. FOR D..............,2 00 SUBTOTAL.....................,2 00 AMT. THIS CHECK............... 200 00 BAL. CAR D. FOR D..............,22 00 SUBTOTAL....................., 00 AMT. THIS CHECK............... 1,0 00 BAL. CAR D. FOR D............., 00 $ : 20 - - 20.00 August, Metro Insurance Company 1 $ : 20 - - 20.00 August, City Electric Company $ : 20 - -.00 August, Patterson Supplies Insurance Utilities Payment on account BAL. BRO T. FOR D............., 00 BAL. BRO T. FOR D.............., 00 BAL. BRO T. FOR D............., 00 SUBTOTAL....................., 00 SUBTOTAL....................., 00 SUBTOTAL....................., 00 SUBTOTAL....................., 00 AMT. THIS CHECK............... 20 00 BAL. CAR D. FOR D.............., 00 SUBTOTAL....................., 00 AMT. THIS CHECK............... 20 00 BAL. CAR D. FOR D.............., 00 SUBTOTAL....................., 00 AMT. THIS CHECK.............. 00 BAL. CAR D. FOR D.............,1 00 $ : 20 - - August, John Walker 20.00 1 $ : 20 - -.00 August, Pennsylvania Telephone Company 1 $ : 20 - -.00 August 1, Ace Cleaning Company Owner s withdrawal Utilities Cleaning BAL. BRO T. FOR D.............,1 00 BAL. BRO T. FOR D.............., 00 BAL. BRO T. FOR D............., 00 SUBTOTAL....................,1 00 SUBTOTAL....................., 00 SUBTOTAL....................., 00 SUBTOTAL.....................,1 00 AMT. THIS CHECK............... 20 00 BAL. CAR D. FOR D............., 00 SUBTOTAL....................., 00 AMT. THIS CHECK............... 00 BAL. CAR D. FOR D.............., 00 SUBTOTAL....................., 00 AMT. THIS CHECK............... 00 BAL. CAR D. FOR D.............., 00 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING
Name Class - CHALLENGE PROBLEM (continued) 1., 2.,. 0 $ : 20 - - 0.00 August 1, Tri-State Agency 1 $ : 20 - -.00 August 1, Pittsburgh Enquirer 2 $ : 20 - - August 22, Dowd Company 1.00 Miscellaneous Advertising Payment on account BAL. BRO T. FOR D............., 00 1 - - 20 00 SUBTOTAL.....................,0 00 BAL. BRO T. FOR D............., 00 SUBTOTAL....................., 00 BAL. BRO T. FOR D.............,20 00 22 - - 0 00 SUBTOTAL.....................,00 00 SUBTOTAL.....................,0 00 AMT. THIS CHECK.............. 0 00 BAL. CAR D. FOR D............., 00 SUBTOTAL....................., 00 AMT. THIS CHECK............... 00 BAL. CAR D. FOR D..............,20 00 SUBTOTAL.....................,00 00 AMT. THIS CHECK............... 1 00 BAL. CAR D. FOR D..............,0 00.00 $ : August 2, 20 - - Jason North $ : 20 - - August 2, John Walker 20.00 $ : 20 - - Miscellaneous Owner s withdrawal BAL. BRO T. FOR D.............,0 00 SUBTOTAL.....................,0 00 SUBTOTAL.....................,0 00 AMT. THIS CHECK............... 00 BAL. CAR D. FOR D.............., 00 BAL. BRO T. FOR D.............., 00 2 - - 0 00 SUBTOTAL.....................,1 00 SUBTOTAL.....................,1 00 AMT. THIS CHECK............... 20 00 BAL. CAR D. FOR D..............,0 00 BAL. BRO T. FOR D.............,0 00 SUBTOTAL.....................,0 00 Service Charge.00 Dishonored check.00 SUBTOTAL..................... AMT. THIS CHECK............... BAL. CAR D. FOR D............ 00, 00 Chapter Cash Control Systems
- CHALLENGE PROBLEM (concluded) 2. RECONCILIATION OF BANK STATEMENT August 2, 20 () Balance On Check Stub No............. $,0 00 Balance On Bank Statement.................. $ DEDUCT BANK CHARGES: ADD OUTSTANDING DEPOSITS: Description Service Charge $ 00 /2/ $ 0 00,2 00 Total bank charges 00 Total outstanding deposits SUBTOTAL............................... DEDUCT OUTSTANDING CHECKS: $ 0 00,0 00 Ck. No. Ck. No. 1 00 00 20 00 Total outstanding checks Adjusted Check Stub Balance.............. $ Adjusted Bank Balance...................... $,0 00 2 00,0 00. JOURNAL 1 2 PAGE DATE ACCOUNT TITLE DOC. POST. REF. GENERAL SALES CASH 1 2 20 Sept. 1 Miscellaneous Expense 1 Accounts Rec. Sheldon Martindale M2 M2 00 00 00 00 1 2 1 1 1 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING