49) Prepare the required journal entries from the bank reconciliation below as of the end of January:

The balance per general ledger is $200

There is a debit memo for interest expense, $100

There is a debit memo for a customer’s NSF check $375

Outstanding checks amount to $2,000

This month’s service charge amounts to $75

Deposits in transit amount to $1,500

50) When completing a bank reconciliation, explain why all adjustments to the checkbook balance require journal entries?

 

51) What is the difference between a debit and credit memorandum?

 

6.3   Learning Objective 6-3

 

1) What type of an account is the petty cash fund?

A) Revenue

B) Expense

C) Asset

D) Liability

 

2) A petty cash fund is set up:

A) to pay for large expenses.

B) to pay for small expenses.

C) for the owner to withdraw money for personal use conveniently.

D) None of these answers are correct.

3) The credit recorded in the journal to replenish the petty cash fund is to:

A) Cash.

B) Petty Cash.

C) Accounts Receivable.

D) Accounts Payable.

 

4) The debit recorded in the journal to establish the petty cash fund is to:

A) Cash.

B) Petty Cash.

C) Accounts Receivable.

D) Accounts Payable.

 

 

 



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