Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2017, its Cash account shows a $27,500 debit balance. The company’s May 31 bank statement shows$25,800 on deposit in the bank. Prepare a bank reconciliation for the company using the following information. a. The May 31 bank statement lists $100 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total$5,600. c. May 31 cash receipts of $6,200 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a$400 check written by Smith Company was mistakenly drawn against Wright’s account. e. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded this NSF check.

Wright Company’s Cash account shows a $27,500 debit balance and its bank statement shows$25,800 on deposit at the close of business on May 31. Prepare its bank reconciliation using the following information.

a. The May 31 bank statement lists $100 in bank service charges; the company has not yet recorded the cost of these services.

b. Outstanding checks as of May 31 total$5,600.

c. May 31 cash receipts of $6,200 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement.

d. In reviewing the bank statement, a$400 check written by Smith Company was mistakenly drawn against Wright’s account.

e. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded this NSF check.

Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows$38 in cash along with receipts for the following expenditures: postage, $74; transportation-in,$29; delivery expenses, $16; and miscellaneous expenses,$43. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $450 on January 8, assuming no entry in part 2.

Wright Company's Cash account shows a $27,500 debit balance and its bank statement shows$25,800 on deposit at the close or business on May 31. Prepare its bank reconciliation using the following information.

c. May 31 cash receipts of $6,200 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement.

At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the$580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries of Chan to record these transactions and events of December 31, February 1, and June 5.

Shan Enterprises received a bank statement listing its May 31, 2016, bank balance as $47,582. Shan determined that as of May 31 it had cash receipts of$2,500 that were not yet deposited and checks outstanding of $7,224. Calculate Shan’s correct May 31, 2016, cash balance.

On a bank reconciliation, interest earned and received but not yet recorded by the company is:

Nakashima Gallery had the following petty cash transactions in February of the current year.

$$\begin{matrix} \text{Feb. 2} & \text{Wrote a \$400 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier.}\\ \text{5} & \text{Purchased paper for the copier for \$14.15 that is immediately used.}\\ \text{9} & \text{Paid \$32.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory}\\ \text{12} & \text{Paid \$7.95 postage to deliver a contract to a client.}\\ \text{14} & \text{Reimbursed Adina Sharon, the manager, \$68 for mileage on her car.}\\ \text{20} & \text{Purchased stationery for \$67.77 that is immediately used.}\\ \text{23} & \text{Paid a courier \$20 to deliver merchandise sold to a customer, terms FOB destination}\\ \text{25} & \text{Paid \$13.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.}\\ \text{27} & \text{Paid \$54 for postage expenses.}\\ \text{28} & \text{The fund had \$120.42 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.}\\ \text{28} & \text{The petty cash fund amount is increased by \$100 to a total of \$500.}\\ \end{matrix}$$

1. Prepare the journal entry to establish the petty cash fund. 2. Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenditures in each category. 3. Prepare the journal entries (in dollars and cents) for part 2 to both (a) reimburse and (b) increase the fund amount.

Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows$104 in cash along with receipts for the followi ng expenditures: transportation-in, $40; postage expenses,$123; and miscellaneous expenses, $80. The petty cashier could not account for a$3 shortage in the fund.

The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $400.

Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2017, its Cash account shows a $27,500 debit balance. The company's May 31 bank statement shows$25,800 on deposit in the bank. Prepare a bank reconciliation for the company using the following information.

a. The May 31 bank statement lists $100 in bank service charges; the company has not yet recorded the cost of these services.
b. Outstanding checks as of May 31 total$5,600.
c. May 31 cash receipts of $6,200 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement.
d. In reviewing the bank statement, a$400 check written by Smith Company was mistakenly drawn against Wright's account.
e. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded this NSF check.

Wright Company's Cash account shows a $27,500 debit balance and its bank statement shows$25,800 on deposit at the close or business on May 31. Prepare its bank reconciliation using the following information.

d. In reviewing the bank statement, a $400 check written by Smith Company was mistakenly drawn against Wright's account.

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $\$ 43,500$. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $\$ 5,000$ salvage value. During its second year, the machine produces 32,500 units of product. Determine the machine's second-year depreciation using the double-declining-balance method.

Which side of the account increases the cash account?

(a) Credit

(b) Neither debit nor credit

(c) Either debit or credit

(d) Debit

Nolan Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2017, its Cash account shows a $22,352 debit balance. Nolan’s June 30 bank statement shows$21,332 on deposit in the bank. Prepare a bank reconciliation for the company using the following information. a. Outstanding checks as of June 30 total $3,713. b. The June 30 bank statement lists$41 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $90 check written by the company was mistakenly recorded in the company’s books at$99. d. June 30 cash receipts of $4,724 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. e. The bank statement included a$23 credit for interest earned on the company’s cash in the bank