E7.8 E7.

11

Dr Petty Cash 100 Bank reconciliation

Cr Cash 100 Bank 7263
(deposit in transit) 1300
Dr Stamp Inventory 39 -591
Dr Freight-Out 21
Dr Miscellaneous Ex 11
Dr Travel Expense 24 7972
Dr Cash over&short 3
Cr Cash 98

Dr Petty cash 75 Dr Bank charges/other expense 28

Cr Cash at bank 75 Cr Cash 28

Dr Cash 736
Note: (Freight-in --> Inventories) Cr Notes receivable 700
Cr Interest income/Interest r 36

Dr Other expense 20
Cr Cash 20

E7.12
Bank Reconciliation

Bank: 16422 Book: 17404

5450 2530
-2383 45
-425
-65
19489 19489

Dr accounts receivabl 425

Cr Cash 425

Dr cash 45
Cr Interest Income 45

Dr Cash
Cr Notes receivable
Cr Interest Income

Dr Other expense
Cr cash

e7.7
 7.13
P7.3
7.4
7.5
7.6
Bank reconciliation
7284 Book
-28 (Bank charge)
700
36 Note collection
-20
7972

Bank Reconciliation
Bank: 16422 Book: 17404
5450 (deposit in transit) 2530 (note collection
-2383 (outstanding checks) 45 (Interest earned
-425
-65
19489 19489

Dr Cash 2530
Cr Notes receivable 2500
Cr Interest income 30

Dr Other expense 65
Cr Cash 65

Dr Cash 45
Cr Interest income 45

Dr Accounts receivabl 425

Cr Cash 425
E7.8
Dr Petty Cash 100
Cr Cash 100

Dr Stamp Inventory 39
Dr Freight-Out 21
Dr Miscellaneous Ex 11
Dr Travel Expense 24
Dr Cash over&short 3
Cr Cash 98

Dr Petty Cash 75
Cr Cash 75
E7.11

Bank Reconciliation
Bank: 7263 Book: 7284
1300 Deposit in transit -28 Bank service charges
-591 Outstanding checks 700
36 Note collection
-20
7972 7972

Journalize the adjusting entries

Dr Bank ch 28
Cr Cash 28

Dr Cash 736
Cr Notes receivable 700
Cr Interest income 36

Dr other e 20
Cr Cash 20
 Bank Reconciliation
Bank: 16422 Book: 17404
5450 Deposit in transit 2530 Notes collection
-2383 Outstanding checks 45 Interest earned
-425 NSF check
-65 Deposit box rent
19489 19489

Journalize the adjusting entries

Dr Cash 2530
Cr Notes receivable 2500
Cr Interest income 30

Dr Cash 45
Cr Interest income 45

Dr Accounts receivab 425

Cr Cash 425

Dr Other expense 65
Cr Cash 65
E7.7
1-May
Dr Petty Cash 100
Cr Cash 100

1-Jun
Dr Delivery expense 31.25
Dr Postage expense 39
Dr Miscellaneous exp 25
Dr Cash over&Short 3
Cr Cash 98.25

1-Jul
Dr Delivery expense 21
Dr Entertainment exp 51
Dr Miscellaneous exp 24.75
Cr Cash 96.75

10-Jul
Dr Petty Cash 30
Cr Cash 30
E7.13

(a) Deposits in transit at July 31 = 15750-(15600-920) = 1070

(b) The outstanding checks at July 31 = 17200-(16400-680) = 1480

(c) Deposits in transit at August = 26700-26400+2100 = 2400

(d) The outstanding checks at August 31 = 25000-23700+2100 = 3400

P7.3

1-Aug Dr Petty Cash 200

Cr Cash 200

15-Aug Dr Freight-out 74.4

Dr Entertainment exp 36
Dr Postage expense 33.7
Dr Miscellaneous exp 27.5
Dr Cash over&short 3.4
Cr Cash 175

16-Aug Dr Petty Cash 200

Cr Cash 200

31-Aug Dr Postage expense 145

Dr Entertainment exp 90.6
Dr Freight-out 46.4
Dr Cash over&short 1
Cr Cash 283
P7.4
(a) Prepare a bank reconciliation
Bank Reconciliation
Bank: 7690.8 Book: 6140
1193.3 Deposit in transit -25 Bank Charges
-1860.1 Checks outstanding 1520 Bank collected through EFT
-36 Check incorrectly entered
-575 NSF charge for a check received
7024 7024

(b) Prepare the necessary adjusting entries

Dr Bank charges 25
Cr Cash 25

Dr Cash 1520
Cr Accounts receivable 1520

Dr Accounts payable 36
Cr Cash 36

Dr Accounts receivable 575

Cr Cash 575
check received
P7.5
Bank reconciliation
Bank: 19239.1 Book: 13985.2
1690.4 Deposit in transit 2242
-720.1 -85
-1050 -90
-621.3 -9
Outstanding checks
-807.4
-798
-889.5
16043.2 16043.2

Journalize:

Dr Cash 2242
Cr Accounts receivable 2242

Dr Other expense 85
Cr Cash 85

Dr Accounts payable 90
Cr Cash 90

Dr Accounts receivab 9
Cr Cash 9
Bank collected through EFT
Additional company checks
Error of overstate
Error of overstate
 P7.6
Bank reconciliation
Bank: 6968 Book: 6738.9
-276.25 Outstanding checks -40 Additional company checks
1880.15 Deposit in transit -50 Error of overstate in cash receipts entry
360 Check incorrectly charged to T -27 Error of understate checks
2690 Bank collected through EFT
-380 NSF charge for a check

8931.9 8931.9

Adjusting entries

Dr Other expense 40
Cr Cash 40

Dr Accounts receivabl 50
Cr Cash 50

Dr Accounts payable 27
Cr Cash 27

Dr Cash 2690
Cr Accounts receivable 2690

Dr Accounts receivab 380

Cr Cash 380
l company checks
verstate in cash receipts entry
nderstate checks
ected through EFT
ge for a check
 Bank Reconciliation
Bank: 14280 Book: 13319
-2410 Outstanding checks -175 NSF check from a customer
1752 Deposit in transit 505 Bank collected through EFT
-27 Error of understate in recording check
13622 13622

X = 13622

Dr Cash 500000
Cr Common Stock 500000

Dr Zinc mine 85000

Cr Cash 85000

Dr Inventories 73000
Cr Accounts payable 20000
Cr Cash 53000

Dr Bank Overdraft 8250

Cr Cash 8250

Dr Cost of Goods sold 125500

Cr Inventories 125500

Dr Cash 262000
Cr Sales revenue 262000

Dr Repair expense 9000

Cr Cash 9000

Dr Common Stock 412

Cr Share premium 412

Dr Prepaid Insurance 10000

Cr Cash 10000

Dr Advertising expense 9000

Dr Salaries and Wages 200000
 Cr Cash 209000

Dr Cash 36000
Cr Unearned service revenue 36000

Dr Retained earnings 80000

Cr Dividends payable 80000

Dr Dividends payable 40000

Cr Cash 40000

Dr Supplies 20000
Cr Cash 20000

Dr New PPE 52000

Dr AD-old equipment 36000
Cr Gain on exchange PPE 29000
Cr Cash 23000
Cr Old PPE 36000

Dr Depreciation expens 206375

Cr Accumulated depreciation-PPE 206375

Dr Supplies expense 17000

Cr Supplies 17000

Dr Depreciation expens 18000

Cr Accumulated depreciation-zinc mi 18000

Dr Insurance expense 2000

Cr Prepaid insurance 2000

Dr Interest expense 7500

Cr Interest payable 7500
n recording check