Reter to the following bank reconciliation. Bank Book Balance, June 30, 2019 Add

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Reter to the following bank reconciliation. Bank Book Balance, June 30, 2019 Add: Deposit in transit 11,240 Balance, June 30, 2019 $10200 Add: Note collected by bank Interest revenue 3,110 2,100 Less: Outstanding checks #506 Outstanding checks #510 1,200 900 NSF check Bank service charge 85 20 Adjusted balance, June 30, 2019 Adjusted balance, $12250June 30, 2019 Journalize the adjusting entry for the second recondiling item Interest revenue, Omit explanation 6) Prepare the journal entries for the following petty cash transactions of City Coffee Shop. Omit explanation Sept. 10 Established a petty cash fund with a 5300 balance Sept. 30 The petty cash fund has $105 in cash and $200 in petty cash tickets there were issued to pay for Delivery Expense ($115 und Postage Expense (585). Replenished the fund and recorded the expenditures ULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question. ) The petty cash fund at Brookshire Company has a designated balance of $350. The fund currently7 holds $126 in cash and $226 in petty cash tickets. Based on this information, which of the following statements is correct? A) To replenish the petty cash fund, the company must write a check, payable to Petty Cash, for 5226, by The petty cash fund custodian must locate the $2 discrepancy. O A shortage of $2exists D) The total of the cash on hand plus petty cash tickets equals the designated fund balance

Explanation / Answer

1. Recording Journal entry for Interest Revenue:

Cash A/c Dr...............$55

To Interest Revenue a/c .. Cr...$55

(Being cash is credited in the books of accounts on behalf of interest revenue a/c )

2. Sept. 10 Petty cash A/c .. dr $300

To Cash A/c.... Cr $300

( Being petty cash fund is recorded)

3. Sept30 Petty cash a/c .......... $ 105

Delivery Expensess $115

Postage expensess $85

To Petty cash tikets $ 200

To Cash $105

(Being petty cash tikets used for delivery expenses and postage expense)

Oct. 10 Petty cash a/c .. Dr (-$250)

To cash a/c Cr (- $250)

( Being Petty cash a/c decreases the balance)

3. Petty cash fund has designated balance is $350.. The funds currently holds cash in hand is $126 and Petty cash tickets is $226 based on the above information following is right assumption: Cash in hand $126 + Petty Cash Tickets $226 = $352

so the, (B) petty cash fund custodian must locate $2 discrepency.

(c) The Shortage of $2 Exists

(d) The Total of the cash on hand Plus Petty Cash tickets equals the deignated fund balance

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