Chapter Opener: Thinking Critically
CASH RECEIPTS, CASH PAYMENTS, AND BANKING
PROCEDURES
CHAPTER 9
Office expenditures may include petty cash disbursements for office supplies and postage. Cash
13. At month-end or when petty cash is replenished.
15. Cash Payments Journal: total amount of purchase is a debit to Accounts Payable. Discount is recorded
as a credit to Purchases Discounts. Amount of cash paid is recorded as a credit to Cash.
16. Cash Receipts Journal: Original sale was recorded as a Credit to Accounts Receivable; amount of the
18. Written promise to pay amount on specific date. Dr. Cash, Cr. Notes Rec., Cr. Interest Income. Cash
receipts journal.
19. Payments made by check and issued only with approved invoice; invoices approved only by designated
21. Only approved employees can handle cash; keep cash in locked location; record cash receipts as they
22. See Glossary for terms and definitions.
Discussion Questions (continued)
EXERCISE 9.1
PAGE
2013
EXERCISE 9.2
PAGE
POST.
REF.
2013
Oct. 1 3850 October rent Rent Expense 260000 260000
1 3851 Fisher Company 295000 295000
12
AMOUNT
POST.
REF.DATE
POST.
REF.
A/C RECV.
CR.
SALES TAX
PAY. CR.
CASH RECEIPTS JOURNAL
POST.
REF.DESCRIPTION
DESCRIPTION
OTHER ACCOUNTS DEBIT
SALES
CREDIT ACCOUNT NAME
OTHER ACCOUNTS CREDIT
15CASH PAYMENTS JOURNAL
DATE
CK.
NO.
CASH DEBIT
PUR. DIS.
CR.
CASH
CREDITAMOUNT
A/C PAY.
DEBIT ACCOUNT NAME
EXERCISE 9.3
PAGE
PURCHASES OTHER ACCOUNTS DEBIT
CASH PAYMENTS JOURNAL 1
ACCOUNTS
ACCOUNT NAME
POST.
REF.
2013
CK.
NO.
PURCHASES
DISCOUNT
CREDIT
CASH
CREDITAMOUNT
OTHER
ACCOUNTS
DEBIT
DESCRIPTIONDATE
POST.
REF.
ACCOUNTS
PAYABLE
DEBIT
EXERCISE 9.4
PAGE
ACCOUNT NAME
POST.
REF.
1
DESCRIPTION
CASH
CREDITAMOUNT
CASH PAYMENTS JOURNAL
DATE
CK.
NO.
POST.
REF.
ACOUNTS
PAYABLE
DEBIT
OTHER ACCOUNTS DEBIT PURCHASES
DISCOUNT
CREDIT
2013
EXERCISE 9.5
14 7 0 0 00Balance on bank statement
Chin Corporation
Bank Reconciliation
October 31, 2013
85700
15 5 5 7 00
Additions:
Deductions for outstanding checks:
Deposit in transit
EXERCISE 9.6
Bank Balance
1. X
Book Balance
Accounting Entry
EXERCISE 9.7 (continued)
PAGE
POST.
REF.
1 2013 1
2 March 31 630000 2
3 Notes Receivable 6 3 0 0 00 3
4 To record receipt of note collected by bank 4
EXERCISE 9.8
Balance on Bank Statement 12 8 0 0 00
Additions:
Check incorrectly charged 1 5 1 00
November 30, 2013
Fierro Company
Bank Reconciliation Statement
Cash
GENERAL JOURNAL 8
DATE DESCRIPTION DEBIT CREDIT
EXERCISE 9.9
PAGE
POST.
REF.
1 2013 1
2 Sept. 22 2 4 0 00 2
324000 3
4 To record ATM withdrawal by Ronnie 4
5 Hunter for personal use. 5
6 6
7 22 Cash 890000 7
20 20
Cash
Ronnie Hunter, Drawing
GENERAL JOURNAL 21
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 9.1A
PAGE
ACCOUNT NAME
POST.
REF.
2013
Feb. 3 Danielle Pelzel 5 0 0 00 50000
5 Refund for damaged
goods
Supplies 129 1 2 0 00 1 2 0 00
7 Cash Sales 3 8 4 00 480000 Cash Short or Over 620 ( 6 0 00) 512400
(111) (231) (401) (X ) (101)
DATE DESCRIPTION
CASH RECEIPTS JOURNAL
POST.
REF.
ACCOUNTS
RECEIVABLE
CREDIT
SALES TAX
PAYABLE
CREDIT
SALES
CREDIT
OTHER ACCOUNTS CREDIT
4
CASH
DEBITAMOUNT
PROBLEM 9.1A (continued)
ACCOUNT Cash ACCOUNT NO.
ACCOUNT Notes Receivable ACCOUNT NO.
ACCOUNT Accounts Receivable ACCOUNT NO.
ACCOUNT Supplies ACCOUNT NO.
CREDIT
CREDIT
129
CREDIT
BALANCE
DEBIT
DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
CREDIT
111
DATE
BALANCE
POST.
REF.DESCRIPTION
BALANCE
DEBIT
CREDIT
109
CREDIT
BALANCE
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
DEBIT
DEBIT
GENERAL LEDGER
101
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
PROBLEM 9.1A (continued)
ACCOUNT Sales Tax Payable ACCOUNT NO.
2013
ACCOUNT Jason Wilson, Capital ACCOUNT NO.
2013
ACCOUNT Sales ACCOUNT NO.
2013
ACCOUNT Interest Income ACCOUNT NO.
GENERAL LEDGER
231
DATE DESCRIPTION
POST.
REF. CREDIT
BALANCE
DEBIT
BALANCE
DEBIT
DEBIT CREDIT CREDIT
DEBIT CREDIT
301
DATE DESCRIPTION
POST.
REF.
DATE DESCRIPTION
DEBIT
401
POST.
REF.
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
CREDIT
491
CREDIT
BALANCE
DEBIT
PROBLEM 9.1A (continued)
ACCOUNT Cash Short or Over ACCOUNT NO.
2013
BALANCE
DEBIT
GENERAL LEDGER
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
620
CREDIT
PROBLEM 9.2A
PAGE
ACCOUNT NAME
POST.
REF.
2013
June 1 4121 Monthly rent Rent Expense 620 250000 250000
2 4122 Tax remittance Sales Tax Payable 231 420000 420000
OTHER ACCOUNTS DEBIT PURCHASES
DISCOUNT
CREDIT
8
CASH
CREDITAMOUNT
CASH PAYMENTS JOURNAL
DATE
CK.
NO. DESCRIPTION
POST.
REF.
ACCOUNTS
PAYABLE
DEBIT
PROBLEM 9.2A (continued)
PAGE
ACCOUNT
NAME
2013
June 4 — Establish fund 2 0 0 00
5 1 Office supplies 3 0 00 3 0 00
8 2 Postage stamps 2 0 00 2 0 00
15 3 Delivery service 1 8 00 1 8 00
22 4 Personal withdrawal 2 4 00 Larry Jennings,
2400
AMOUNTRECEIPTS
8
DESCRIPTION
DISTRIBUTION OF PAYMENTS
MISC.
EXPENSE
DEBIT
PETTY CASH ANALYSIS SHEET
PAYMENTSDATE
VOU.
NO.
DELIVERY
EXPENSE
DEBIT
SUPPLIES
DEBIT
OTHER ACCOUNTS DEBIT
PROBLEM 9.2A (continued)
ACCOUNT Cash ACCOUNT NO.
2013
ACCOUNT Petty Cash Fund ACCOUNT NO.
2013
ACCOUNT Supplies ACCOUNT NO.
2013
ACCOUNT Notes Payable ACCOUNT NO.
2013
DEBIT
GENERAL LEDGER
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT CREDIT
CREDIT
201
BALANCE
DEBIT CREDIT
101
105
129
BALANCE
BALANCE
DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
DATE DESCRIPTION
POST.
REF.
DATE
DEBIT
CREDIT
CREDIT
BALANCE
DESCRIPTION
POST.
REF. DEBIT CREDIT
CREDIT
DEBIT
PROBLEM 9.2A (continued)
ACCOUNT Accounts Payable ACCOUNT NO.
2013
ACCOUNT Sales Tax Payable ACCOUNT NO.
ACCOUNT Larry Jennings, Drawing ACCOUNT NO.
2013
ACCOUNT Sales Returns and Allowances ACCOUNT NO.
2013
CREDIT
BALANCE
DEBIT CREDIT
DATE DESCRIPTION
POST.
REF. DEBIT
CREDIT
DATE DESCRIPTION
POST.
REF. DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
451
BALANCE
DEBIT CREDIT
CREDIT
BALANCE
DEBIT CREDIT
CREDIT
BALANCE
DEBIT
205
231
302
GENERAL LEDGER
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
PROBLEM 9.2A (continued)
ACCOUNT Purchases Discounts ACCOUNT NO.
2013
ACCOUNT Delivery Expense ACCOUNT NO.
ACCOUNT Rent Expense ACCOUNT NO.
ACCOUNT Salaries Expense ACCOUNT NO.
GENERAL LEDGER
DATE DESCRIPTION
POST.
REF.
BALANCE
DEBIT CREDIT
504
DEBIT CREDIT
620
BALANCE
DEBIT
611
DEBIT CREDITDATE DESCRIPTION
POST.
REF.
POST.
REF.DATE DESCRIPTION
DATE DESCRIPTION
POST.
REF.
DEBIT
DEBIT
623
CREDIT CREDIT
BALANCE
DEBIT
DEBIT CREDIT
BALANCE
CREDIT
CREDIT
PROBLEM 9.2A (continued)
ACCOUNT Telephone Expense ACCOUNT NO.
ACCOUNT Interest Expense ACCOUNT NO.
ACCOUNT Miscellaneous Expense ACCOUNT NO.
DATE
DEBIT CREDIT
CREDIT
DATE
BALANCE
DESCRIPTION
POST.
REF.
DEBIT
DEBIT
635
GENERAL LEDGER
626
DATE DESCRIPTION
DEBIT CREDIT
BALANCE
BALANCE
CREDIT
POST.
REF. DEBIT CREDIT
DESCRIPTION
POST.
REF. CREDIT
DEBIT
634
PROBLEM 9.3A
PAGE
INVOICE
NO. CUSTOMER’S NAME
POST.
REF.
1 2013 1
2 April 1 9312 Soprano Music Center 3 9 0 0 00 2
SALES JOURNAL 7
DATE
ACCOUNTS
RECEIVABLE
DR./ SALES CR.
PROBLEM 9.3A (continued)
PAGE
ACCOUNT
N
AME
POST.
REF.
2013
April 3 Music Supply Store 1500 00 3000 147000
5 Cash sales 1575 00 157500
POST.
REF. CASH DEBIT
AMOUNT
SALES
DISCOUNT
DEBIT
ACCOUNTS
RECEIVABLE
CREDIT
CASH RECEIPTS JOURNAL
SALES
CREDIT
OTHER ACCOUNTS CREDIT
7
DATE DESCRIPTION