Chapter 6 example #17428

The entry to establish a petty cash fund includes:

During the month of July, Clanton Industries issued a check in the amount of $778 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

On a bank reconciliation, an unrecorded debit memorandum for printing checks is:

The number of days' sales uncollected is calculated by:

Silver Co. has a $390 petty cash fund. At the end of the first month the accumulated receipts represent $62 for delivery expenses, $203 for merchandise inventory, and $31 for miscellaneous expenses. The fund has a balance of $94. The journal entry to record the reimbursement of the account includes a:

A company had net sales of $31,400 and ending accounts receivable of $2,800 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)

At the end of the day, the cash register's record shows $2,050, but the count of cash in the cash register is $2,058. The correct entry to record the cash sales is:

A company wants to decrease its $200.00 petty cash fund to $75.00. The entry to reduce the fund is:

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n):

The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents$8,619Accounts receivable$71,422Merchandise inventories$61,362Prepaid expenses$4,300Accounts payable$15,150Notes payable$87,638Other current liabilities$9,700 If net credit sales for the current year were $610,500, the firm's days' sales uncollected for the year is: (Use 365 days a year.)

The principles of internal control include:

Cash equivalents:

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $65,709. Easton's June bank statement shows $62,749 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit$5,450Outstanding checks$2,475Check printing fee, not yet recorded by company$26Interest earned on account, not yet recorded by the company$41 The adjusted cash balance should be: