Problem 1 - Hallihan Company completed the following selected transactions during June 2010:
June 1. Established a petty cash fund of $500.
June 12. The cash sales for the day, according to the cash register records, totaled $13,115. The actual cash received from cash sales was $13,129.
June 30. Petty cash on hand was $38. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:
June 2. Store supplies, $55.
June 10. Express charges on merchandise purchased, $80 (Merchandise Inventory).
June 14. Office supplies, $35.
June 15. Office Supplies, $40.
June 18. Postage stamps, $42 (Office Supplies).
June 20. Repair to fax, $100 (Miscellaneous Administrative Expense).
June 21. Repair to office door lock, $35 (Miscellaneous Administrative Expense).
June 22. Postage due on special delivery letter, $27 (Miscellaneous Administrative Expense).
June 28. Express charges on merchandise purchased, $40 (Merchandise Inventory).
June 30. The cash sales for the day, according to the cash register records, totaled $16,850. The actual cash received from cash sales was $16,833.
June 30. Increased the petty cash fund by $125.
Instructions: Journalize the transactions.
Problem 2 - The cash account for Interactive Systems at February 28, 2010, indicated a balance of $7,635. The bank statement indicated a balance of $13,333 on February 28, 2010. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
A. Checks outstanding totaled $4,118.
B. A deposit of $4,500, representing receipts of February 28, had been made too late to appear on the bank statement.
C. The bank had collected $5,200 on a note left for collection. The face of the note was $5,000.
D. A check for $290 returned with the statement had been incorrectly recorded by Interactive Systems as $920. The check was for the payment of an obligation to Busser Co. for the purchase of office supplies on account.
E. A check drawn for $415 had been incorrectly charged by the bank as $145.
F. Bank service charges for February amounted to $20.
Instructions:
1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed.