Week 5- Chapter 8 Activity2 pts. each #1 For each item 1 through 12, place an x in the appropriate column to indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation.If the book balance is to be adjusted, place a Dr. or Cr. In the Adjust column to indicate whether the Cash balance should be debited or credited.At the left side of your table, number the items to correspond to the following list. Bank Balance Book Balance Not shown on reconciliation Add Deduct Add Deduct Adjust 1 NSF check from customer is returned on September 25 but not yet recorded by this company. 2 Interest earned on the September cash balance in the bank. 3 Deposit made on September 5 and processed by the bank on September 6. 4 Checks written by another depositor but charged against this companys account. 5 Bank service charge for September. 6 Checks outstanding on August 31 that cleared the bank in September. 7 Check written against the companys account and cleared by the bank; erroneously not recorded by the companys recordkeeper. 8 Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company. 9 Checks written and mailed to payees on October 2. 10 Checks written by the company and mailed to payees on September 30. 11 Night deposit made on September 30 after the bank closed. 12 Special bank charge for collection of note in part 8 on this companys behalf. #2 Del Gato Clinic 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, 2015, its Cash account shows an $11,589 debit balance. Del Gato Clinic's June 30 bank statement shows $10,555 on deposit in the bank. JE Required?Yes or no a. Outstanding checks as of June 30 total $1,829. b. The June 30 bank statement included a $16 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for $467 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $476. d. The June 30 cash receipts of $2,856 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. Prepare: 1- The bank reconciliation for Del Gato Clinic using the above information 2- the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation. (If no entry is required for a transaction/event a-d, indicate "No journal entry required") (if a journal entry is written, don't forget the description). DEL GATO CLINIC Bank Reconciliation 30-Jun-15 Bank statement balance Book Balance Add: Add: Deposit of June 30 Error on Check #919 Subtotal Subtotal Deduct: Deduct: Outstanding Checks Bank service charge Adjusted bank Balance Adjusted Book balance DEBIT CREDIT 30-Jun Cash.. Utilities Expense.. Miscellaneous Expenses. Cash #3 Match each document in a voucher system with its description. Answers Description Document An itemzed Statement of goods prepared by the vendor 1.Purchase requisition listing the customer's name, items sold, sales prices, and terms of sale. 2.Purchase order An internal file used to store documents and information 3.Invoice to control cash disbursements and to ensure that a transaction is properly authorized and recorded. 4.Receiving report A document used to place an order with a vendor that 5.Invoice approval authorizes the vendor to ship ordered merchandise at the stated price and terms. 6.Voucher A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization. A document used by department managers to inform the purchasing department to place an order with a vendor. A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of goods. #4 Barga Co. reported annual net sales for 2014 and 2015 of $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2016$65,000 December 31, 2017$123,000 Calculate the days'sales uncollected at the end of each year. (Round to one decimal.) (Accounts Receivable / Net Sales ) X 365 = _______ days. 2016 = 2017 = #5 Paloma 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 Transortation-in (inventory) 29 Delivery expenses 16 Miscellaneous 43 Total $162 Prepare journal entries to: 1)Establish the fund 2) Reimburse it on January 8 3) increase the fund to $450 (Remember to include descriptions on your journal entries) Jan. 1 Debit Credit Petty cash Cash Jan. 8 Postage Expense Merchandise Inventory Delivery Expense Miscellaneous Expenses Cash Petty Cash Cash