Weber Productions
Bank Reconciliation
February 28
Bank’s Cash Balance Company’s Cash Balance
Per bank statement $ 4,576 Per general ledger $21,861
Deposits outstanding + 7,348 NSF check − 6,783
Checks outstanding − 541 Service fees − 195
PROBLEMS: SET C
Problem 4-1C
Requirement 1
Hollybuster Video
Bank Reconciliation
October 31, 2015
Bank’s Cash Balance Company’s Cash Balance
Per bank statement $11,570 Per general ledger $10,858
Deposits outstanding + 575 Company error + 40
Checks outstanding − 1,120 EFT for note − 500
Debit Credit
Cash 40
Notes Payable 450
Interest Expense 50
Requirement 2
The company has a large amount of NSF checks. This indicates that the company’s
Deposits outstanding are relatively high. The company should more frequently deposit
The amount established for the petty cash fund may be too high. Petty cash provides
Problem 4-2C
Requirement 1
Requirement 2
Service Fees Expense 40
Jim Incorporated
Bank Reconciliation
July 31, 2015
Bank’s Cash Balance Company’s Cash Balance
Per bank statement $5,135 Per general ledger $7,670
Deposits outstanding +3,420 Company error − 200
Service fees − 75
Office supplies − 400
Debit Credit
Cash 60
Equipment 200
Accounts Receivable 300
Service Fees Expense 75
Supplies 400
Problem 4-3C
Requirement 1
Requirement 2
Mason Furniture
Statement of Cash Flows
For the month ended August 31, 2015
Cash Flows from Operating Activities
Cash inflows:
From customers $82,300
Cash outflows:
For salaries (42,400)
For advertising (5,400)
Cash Flows from Investing Activities
Sale of unused land 11,500
Cash Flows from Financing Activities
Issuance of common stock 25,000
Net cash flows from financing activities 16,500
Net increase in cash 24,400
Cash at the beginning of the month 6,900
June 2 Debit Credit
Cash 22,000
Problem 4-4C
Problem 4-5C
Requirement 1
June 3 Debit Credit
Rent Expense 1,800
June 7 Debit Credit
Cash 6,500
Accounts Receivable 2,900
June 11 Debit Credit
Equipment 18,500
June 17 Debit Credit
Salaries Expense 5,200
June 22 Debit Credit
Dividends 2,300
June 25 Debit Credit
Cash 2,800
June 28 Debit Credit
Utilities Expense 1,900
Problem 4-5C (continued)
Requirement 1 (concluded)
June 30 Debit Credit
Salaries Expense 5,200
All transactions involve cash except for the salaries payable
transaction on June 30.
Cash
Debits Credits
June 1 12,500 1,800 June 3
June 2 22,000 18,500 June 11
June 7 6,500 5,200 June 17
June 25 2,800 2,300 June 22
1,900 June 28
Requirement 2
Requirement 3
Thomson Services
Statement of Cash Flows
For the month ended June 30
Cash Flows from Operating Activities
Cash inflows:
From customers $ 9,300
Cash outflows:
For rent (1,800)
For salaries (5,200)
Cash Flows from Investing Activities
Purchase equipment (18,500)
Cash Flows from Financing Activities
Borrow from bank 22,000
Net cash flows from financing activities 19,700
Net increase in cash 1,600
Net cash flows on statement of cash flows = $1,600
Change in cash balance for the month = $14,100 (ending) − $12,500 (beginning)
Problem 4-5C
Requirement 4
Requirement 5