Joseph Kiuvik is reviewing the cash accounting for Connolly Corporation, a local mailing service. Kiuvik's review will

Question:

Joseph Kiuvik is reviewing the cash accounting for Connolly Corporation, a local mailing service. Kiuvik's review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2017. He has collected the following information from Connolly's bookkeeper:

Petty Cash 1. The petty cash fund was established on May 10, 2017, in the amount of $400.

2. Expenditures from the fund as at May 31, 2017, were supported by approved receipts for the following:

Joseph Kiuvik is reviewing the cash accounting for Connolly Corporation,

3. On May 31, 2017, the petty cash fund was replenished and increased to $500; currency and coin in the fund at that time totalled $47.10.

Joseph Kiuvik is reviewing the cash accounting for Connolly Corporation,

Connolly's general ledger Cash account had a balance of $9,300 on May 1. During the month, the company deposited $31,000 in the bank and wrote cheques in payment of accounts payable and the payroll for $31,685. Deposits in transit at the end of the month are determined to be $3,000, cash still on hand with the company cashier is $246 (besides petty cash), and cheques outstanding at May 31 total $550. Connolly uses a periodic inventory system.
Instructions
(a) Prepare the journal entries to record the transactions related to the petty cash fund for May.
(b) Prepare a bank reconciliation dated May 31, 2017, proceeding to a correct balance, and prepare the journal entries to make the books correct and complete.
(c) What amount of cash should be reported in the May 31, 2017 statement of financial position?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119048534

11th Canadian edition Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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