Requirement 2
Debit Credit
Cash 6,450
Notes Receivable 6,000
Accounts Receivable 200
Advertising Expense 300
Rent Expense 1,100
Service Fee Expense 125
Problem 4-3A (LO 4-5)
Requirement 1
Diaz Entertainment
Bank Reconciliation
May 31, 2015
Bank’s Cash Balance Company’s Cash Balance
Per bank statement $6,210 Per general ledger $5,100
Deposits outstanding +3,180 NSF check − 400
Checks outstanding −4,150 Interest earned + 90
Requirement 2
Debit Credit
Cash 1,190
Notes Receivable 1,100
Accounts Receivable 400
Service Fee Expense 50
Problem 4-4A (LO 4-7)
Pixar Toy Manufacturing
Statement of Cash Flows
For the month ended August 31, 2015
Cash Flows from Operating Activities
Cash inflows:
From customers $93,500
Cash outflows:
For salaries (65,300)
For office rent (19,000)
For office utilities (11,800)
Cash Flows from Investing Activities
Sale of unused warehouse 36,000
Cash Flows from Financing Activities
Bank borrowing 26,000
Payment of dividends (6,700)
Net cash flows from financing activities 19,300
Problem 4-5A (LO 4-7)
Requirement 1
October 2 Debit Credit
Cash 8,500
October 5 Debit Credit
Cash 12,000
October 9 Debit Credit
Equipment 9,600
Cash 4,800
October 12 Debit Credit
Advertising Expense 1,500
October 19 Debit Credit
Dividends 4,400
October 22 Debit Credit
Prepaid Insurance 6,900
Problem 4-5A (connued)
Requirement 1 (concluded)
October 25 Debit Credit
Cash 5,600
October 30 Debit Credit
Utilities Expense 5,200
October 31 Debit Credit
Salaries Expense 7,300
Requirement 2
All transactions involve cash except for the utilities payable transaction on October
30.
Requirement 3
Cash
Debits Credits
October 1 16,600 4,800 October 9
October 2 8,500 1,500 October 12
October 5 12,000 4,400 October 19
October 25 5,600 6,900 October 22
Problem 4-5A (connued)
Requirement 4
Balboa’s Gym
Statement of Cash Flows
For the month ended October 31
Cash Flows from Operating Activities
Cash inflows:
From customers $14,100
Cash outflows:
For advertising (1,500)
Cash Flows from Investing Activities
Purchase of boxing equipment (4,800)
Cash Flows from Financing Activities
Issuance of common stock 12,000
Net increase in cash 1,200
Requirement 5
Net cash flows in statement of cash flows = $1,200
Change in cash balance for the month = $17,800 (ending) − $16,600 (beginning)
Problem 4-1B (LO 4-4, 4-5)
Requirement 1
Problems: Set B
Howard Productions
Bank Reconciliation
February 28
Bank’s Cash Balance Company’s Cash Balance
Per bank statement $ 735 Per general ledger $19,225
Deposits outstanding +7,692 NSF check − 5,278
Bank balance per
Company balance per
Requirement 2
The company has a large amount of NSF checks. This indicates that the company’s
procedures related to acceptance of customers’ checks is not reliable. The
The amount established for the pe/y cash fund may be too high. Pe/y cash
Problem 4-2B (LO 4-5)
Requirement 1
Blockwood Video
Bank Reconciliation
October 31, 2015
Bank’s Cash Balance Company’s Cash Balance
Per bank statement $12,751 Per general ledger $12,381
Deposits outstanding + 835 Company error + 27
NSF check − 85
Bank balance per
Company balance per
Requirement 2
Debit Credit
Cash 27
Note Payable 500
Interest Expense 60
Service Fee Expense 34
Accounts Receivable 85
Cash 679
Problem 4-3B (LO 4-5)
Requirement 1
Glover Incorporated
Bank Reconciliation
July 31, 2015
Bank’s Cash Balance Company’s Cash Balance
Per bank statement $3,750 Per general ledger $5,670
Deposits outstanding +2,820 Company error − 400
Service fees − 60
Office supplies − 600
Bank balance per
Company balance per
Requirement 2
Debit Credit
Cash 60
Equipment 400
Accounts Receivable 500
Service Fee Expense 60
Supplies 600
Problem 4-4B (LO 4-7)
Dreamworks Bedding Supplies
Statement of Cash Flows
For the month ended August 31, 2015
Cash Flows from Operating Activities
Cash inflows:
From customers $ 80,400
From interest 300
Cash outflows:
For salaries (47,100)
For advertising (5,900)
Cash Flows from Investing Activities
Sale of unused land 15,700
Cash Flows from Financing Activities
Issuance of common stock 30,000
Net increase in cash 13,100
Cash at the beginning of the month 8,300