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6-22
EXERCISE 6-7A
a. & c.
Han’s Supplies
Statements Model
Assets
=
Liab.
+
S. Equity
Rev.
−
Exp.
=
Net Inc.
Cash Flow
Cash
+
Acct. Rec.
(a) (270)
+
270
=
NA
+
NA
NA
−
NA
=
NA
(270) OA
(c) 290
+
(270)
=
NA
+
20
20
−
NA
=
20
290 OA
b. Asset exchange.
c. See financial statements model above. The $30 fee is miscellaneous
income.
d. Asset Exchange is $270 and Asset Source is $20.
e.
Event
Account Titles
Debit
Credit
a.
Accounts Receivable
270
Cash
270
c.
Cash
290
Accounts Receivable
270
Miscellaneous Income
20
6-23
EXERCISE 6-8A
Reconciling Items
Book Balance
Adjusted?
Added or
Subtracted?
Credit Memo
Yes
+
Interest Revenue
Yes
+
Deposits in Transit
No
NA
Debit Memo
Yes
−
Service Charge
Yes
−
Charge for Printing New Checks
Yes
−
NSF Check from Customer
Yes
−
Note Receivable Collected by the Bank
Yes
+
Outstanding Checks
No
NA
6-24
EXERCISE 6-9A
Reconciling Items
Bank Balance
Adjusted?
Added or
Subtracted?
Bank Service Charge
No
NA
Outstanding Checks
Yes
−
Deposits in Transit
Yes
+
Debit Memo
No
NA
Credit Memo
No
NA
Certified Checks
No
NA
Petty Cash Voucher
No
NA
NSF Check from Customer
No
NA
Interest Revenue
No
NA
6-25
EXERCISE 6-10A
a.
Bank Reconciliation
Unadjusted Bank Balance 6/30/2016
$19,500
Add: Deposit in Transit
2,400
Less: Outstanding Check
(6,690)
True Cash Balance 6/30/2016
$15,210
Unadjusted Book Balance 6/30/2016
$15,200
Add: Credit Memo for Interest Earned
30
Less: Debit Memo for Service Charge
(20)
True Cash Balance 6/30/2016
$15,210
b.
Date
Account Titles
Debit
Credit
Adj 1
Cash
30
Interest Revenue
30
Adj 2
Bank Service Charge Expense
20
Cash
20
6-26
EXERCISE 6-11A
Unadjusted Bank Balance, 6/30
81,500
Plus: Deposits in Transit
3,150
Less: Outstanding Check
(5,611)
True Cash Balance, 6/30
$79,039
EXERCISE 6-12A
Unadjusted Book Balance, 5/31
$7,750
Add: Interest Earned
$ 13
Note Collected by Bank
800
813
Less: NSF Check
72
Service Charges
50
(122)
True Cash Balance, 5/31
$8,441
EXERCISE 6-13A
6-28
EXERCISE 6-14A
a.
Fresh Foods
Statements Model
Assets
=
S.
Equity
Rev.
−
Exp.
=
Net Inc.
Cash Flow
No
.
Cash
+
Petty
Cash
=
Ret.
Earn.
1.
(100.00)
+
100.00
=
NA
NA
−
NA
=
NA
NA
2.
NA
+
NA
=
NA
NA
−
NA
=
NA
NA
3.
(90.80)*
+
NA
=
(90.80)
NA
−
90.80
=
(90.80)
(90.80) OA
*$100.00 − $9.20 = $90.80
b.
Fresh Foods
General Journal Entries
Event No.
Account Titles
Debit
Credit
1.
Petty Cash
100.00
Cash
100.00
2.
No Entries
3.
Maintenance Expense
61.50
Office Supplies Expense
12.50
Transportation Expense
15.00
Cash Short and Over
1.80
Cash
90.80
6-29
EXERCISE 6-15A
$196.50 the amount of the vouchers; cash short and over will be credited
for $1.30.
6-30
EXERCISE 6-16A
The memo should explain that his confidentiality requirements prohibit
acts.
6-31
PROBLEM 6-17A
a. Separation of duties would help to prevent this type of theft. The
functions of authorization, recording, and custody should be handled
by different individuals. Trap should not be authorizing
6-32
PROBLEM 6-18A
a.
Hall’s Cards
Bank Reconciliation
August 31, 2016
Unadjusted Bank Balance, August 31, 2016
$16,140
Add: Deposit in Transit
4,150
Less: Outstanding Checks
( 5,370)
True Cash Balance, August 31, 2016
$14,920
Unadjusted Book Balance, August 31, 2016
$14,100
Add: Error in recording check for inventory
900
Less: Debit Memo for new checks
(80)
True Cash Balance, August 31, 2016
$14,920
b.
General Journal
Ref.
Account Titles
Debit
Credit
1.
Cash
900
Inventory
900
2.
Office Supplies Expense
80
Cash
80
6-33
PROBLEM 6-19A
Pro Beauty Supply, Inc.
Bank Reconciliation
May 31, 2016
Unadjusted Bank Balance, May 31, 2016
$9,150
Add: Deposits in Transit
$1,510
Bank Error
560
2,070
Less: Outstanding Checks #3013
510
3054
640
3056
1,520
(2,670)
True Cash Balance, May 31, 2016
$8,550
Unadjusted Book Balance, May 31, 2016
$8,510*
Add: Note Collected by Bank
$ 500
500
Less: Collection Fee
20
Bank Service Charge
40
NSF Checks
310
Error in recording payment for
utilities
90
(460)
True Cash Balance, May 31, 2016
$8,550
*Unadjusted cash balance per Pro Beauty Supply’s books is computed as:
x + $500 − $460 = $8,550;
x = $8,510.
6-34
PROBLEM 6-20A
Wong Company
General Journal
January 31, 2016
Event
Account Titles
Debit
Credit
a.
Bank Service Charge Expense
50
Cash
50
b.
No Entry
c.
Accounts Receivable
62
Cash
62
d.
No Entry
e.
No Entry
f.
Office Supplies
18
Cash
18
g.
Cash
450
Notes Receivable
450
h.
No Entry
PROBLEM 6-21A
a.
Park Valley Spa
Bank Reconciliation
July 31, 2016
Unadjusted Bank Balance, July 31, 2016
$14,929
Add: Deposit in Transit
3,550
Less: Outstanding Checks #2353
$1,500
2356
745
(2,245)
True Cash Balance, July 31, 2016
$16,234
Unadjusted Book Balance, July 31, 2016
$13,200
Add: Credit Memo for Collection of Notes
Receivable
3,050
Less: Debit Memo for Printed Checks
(16)
True Cash Balance, July 31, 2016
$16,234
6-36
PROBLEM 6-22A
Assets
=
Liabilities
+
Stockholders’ Equity
Event
Numbe
r
Type of
Event
Common
Stock
+
Retained
Earnings
1.
AS
+
NA
NA
+
2.
AE
+ −
NA
NA
NA
3.
AS
+
NA
NA
+
4.
AU
−
NA
NA
−
5.
AE
+ −
NA
NA
NA
