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Problem 8-3

Falcon Company set up a petty cash fund for payments of small amounts. The following
transactions involving the petty cash fund occurred in April (the last month of the
company’s fiscal year). For the journal entries, use the account titles listed in the Chart
of Accounts on pages CA & CA-1 in the back of the textbook.

Prepared a company check for to establish the petty cash fund.

Prepared a company check both to replenish the fund for the following
expenditures made since April 1 .

Paid for janitorial services.
Paid to deliver merchandise to a customer, terms FOB
destination.
Paid postage expenses of .
Paid for miscellaneous expense items.
Counted remaining in the petty cash box.

The company decides that the in the fund was too much. It
decreases the fund by leaving a total of .

The petty cashier reports that remains in the fund. A company
check is drawn to replenish the fund for the following expenditures made
since April 15.

Paid postage expenses of .
Reimbursed the office manager for business mileage, .
Paid for newspaper advertisement.

The company decides that the April 16 decrease to the fund was too little.
It decreases the fund by another leaving a total of .

Required

Prepare journal entries to establish the fund on April 1, to replenish it on April 15 and
on April 30, and to reflect any increase or decrease in the fund balance on April 16 and
April 30.

Check Apr 30, credit to cash,

300.00$ 100.00$

145.00$

200.00$ 100.00$

55.00$

April

15

1

16

46.00$

90.00$

400.00$

400.00$

90.00$ a.   
b.   

c.   
d.   
e.   

50.00$

55.00$

121.00$

155.00$

46.00$

30

30

g.
h.   

f.

• Sheet1

Problem 8-3

Problem 8-3

Name

General Journal

Date

Account Titles and Explanation

PR

Debit

Credit

Problem 8-4

The following information is available to reconcile Bear Co. book balance of cash with
its bank statement cash balance as of December 31, 2012:

a. After all posting is complete on December 31, the company’s Cash account has a
debit balance, but its bank statement shows a

balance.
b. Check No. for and check No. for , both

written and entered in the accounting records in December, are not among the
canceled checks. Two checks, No. for and No. for

, were outstanding on the most recent November 30 reconciliation.
Check No. is listed with the December canceled checks, but Check
No. is not.

c. In comparing the canceled checks returned by the bank with the entries in the
accounting records, it is found that Check No. for November phone bill
was correctly written and drawn for but was erroneously entered in the
accounting records as .

d. The bank charged Bear for a safe-deposit box. Bear does not have a
safe-deposit box.

e. A debit memorandum for lists a NSF check plus a NSF
charge. The check had been received from Ima Bad Electrician. Bear has not yet
recorded this check as NSF.

f. Enclosed with the statement is a debit memorandum for bank services. It
has not yet been recorded because no previous notification had been received.

g. The December 31 daily cash receipts of were placed in the bank’s night
depository on that date but do not appear on the December 31 bank statement.

Required

1.  Prepare a bank reconciliation for this company as of December 31, 2008.

2.  Prepare the journal entries necessary to bring the company’s book balance of cash
into conformity with the reconciled cash balance as of December 31, 2008.

Check (1) Reconciled balance, 26,753.00$

24,783.00$

50$

90$

7,500$

50$

925$ 875$

2372

2379

2372
375.50$

468.10$
486.10$

2375 4,850.00$ 2377 280.00$

27,750.00$

2371

2371450.00$

• Sheet1

Problem 8-4

Problem 8-4

Add:

Deduct:

Name

Part 1

Bank statement balance

Book balance

Add:

Deduct:

Adjusted bank balance

Adjusted book balance

General Journal

Date

Account Titles and Explanation

PR

Debit

Credit