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Nottleman Inc
Bill Jovi is reviewing the cash accounting for Nottleman Inc
Bill Jovi is reviewing the cash accounting for Nottleman, Inc., a local mailing service. Jovi's
review will focus on the petty cash account and the bank reconciliation for the month ended May
31, 2017. He has collected the following information from Nottleman's bookkeeper for this task.
Petty Cash
1. The petty cash fund was established on May 10, 2017, in the amount of $250.
2. Expenditures from the fund by the custodian as of May 31, 2017, were evidenced by
approved receipts for the following.
Postage expense.....................................$33.00
Newspaper advertising.............................22.80
Miscellaneous expense.............................15.35
On May 31, 2017, the petty cash fund was replenished and increased to $300; currency and
coin in the fund at that time totaled $26.40.
Bank Reconciliation
Deposits in transit are determined to be $3,000, and checks outstanding at May 31 total $850.
Instructions
(a) Prepare the journal entries to record the transactions related to the petty cash fund for May.
(b) Prepare a bank reconciliation dated May 31, 2017, proceeding to a correct cash balance,
and prepare the journal entries necessary to make the books correct and complete.
(c) What amount of cash should be reported in the May 31, 2017, balance sheet?
ANSWER
https://solvedquest.com/bill-jovi-is-reviewing-the-cash-accounting-for-nottleman-inc/