Scenario II
Diedre Jackson has been running her own small cleaning services business for several months.
During the current month she received payments from 4 major customers; $2,400 on Oct. 8, $1,800 on Oct. 12,
$2,800 on Oct. 24, and $1,700 on Oct. 31 (after bank hours). She made payments, all by check, for rent on Oct. 1 of $2,500, to her supplier
on Oct. 16 of $1,600, to her 2 employees of $1,500 on Oct. 15, and another $1,500 on Oct. 31. Also on Oct. 31, she
paid herself $2,000. Diedre charged $300 for the depreciation of her van and cleaning equipment.
On Nov. 4, Diedre received her bank statement. It showed a balance for Oct. 31 of $3,600.00. Fees for the month
were $20. A payment of $900 made in September was paid in October, and a deposit of $400 made Sept. 30 was banked on Oct. 2.
A Sept. customer payment recorded as $900 in error was correctly banked as $1,000. The cash balance on Oct. 31 according
to Diedre's accounting records was $1,720.00
9) Write the entries for the cash receipts journal.
a) Cash Receipts Journal
Date Credit Account Amount
Oct. 8 Accounts Receivable ............ 2,400.00
To record receivables payments.
Oct. 12 Accounts Receivable ............ 1,800.00
To record receivables payments.
Oct. 24 Accounts Receivable ............ 2,800.00
To record receivables payments.
b) Cash Receipts Journal
Date Credit Account Amount
Oct. 8 Accounts Receivable ............ 2,400.00
To record receivables payments.
Oct. 12 Accounts Receivable ............ 1,800.00
To record receivables payments.
Oct. 24 Accounts Receivable ............ 2,800.00
To record receivables payments.
Oct. 31 Accounts Receivable ............ 1,700.00
To record receivables payments.
c) Cash Receipts Journal
Date Credit Account Amount
Oct. 8 Accounts Receivable ............ 2,400.00
To record receivables payments.
Oct. 12 Accounts Payable ............... 1,800.00
To record receivables payments.
Oct. 24 Accounts Receivable ............ 2,800.00
To record receivables payments.
Oct. 31 Inventory ...................... 1,700.00
To record receivables payments.
d) Cash Disbursements Journal
Date Debit Account Amount
Oct. 18 Accounts Receivable ............ 2,400.00
To record receivables payments.
Oct. 2 Accounts Receivable ............ 1,800.00
To record receivables payments.
Oct. 29 Accounts Receivable ............ 2,800.00
To record receivables payments.
Oct. 32 Accounts Receivable ............ 1,700.00
To record receivables payments.
e) None of the above.
10) Write the general journal entry for the month's cash receipts.
11) Write the cash disbursements journal entries for the month's payments.
a) Cash Disbursements Journal
Date Debit Account Amount
Oct. 1 Rent Expense ................... 2,500.00
To record payment of rent.
Oct. 15 Wages Expense .................. 1,500.00
To record payment of wages.
Oct. 16 Accounts Payable ............... 1,600.00
To record payment of supplies purchase.
b) Cash Disbursements Journal
Date Debit Account Amount
Oct. 1 Rent Expense ................... 2,500.00
To record payment of rent.
Oct. 15 Wages Expense .................. 1,500.00
To record payment of wages.
Oct. 16 Accounts Payable ............... 1,600.00
To record payment of supplies purchase.
Oct. 31 Wages Expense .................. 1,500.00
To record payment of wages.
Oct. 31 Capital - Deidre Jackson ....... 2,000.00
To record owner withdrawal.
c) Cash Disbursements Journal
Date Debit Account Amount
Oct. 1 Rent Expense ................... 2,000.00
To record payment of rent.
Oct. 15 Wages Expense .................. 1,400.00
To record payment of wages.
Oct. 16 Accounts Payable ............... 1,600.00
To record payment of supplies purchase.
Oct. 31 Depreciation Expense ........... 300.00
To record payment of wages.
Oct. 31 Wages Expense .................. 1,400.00
To record payment of wages.
Oct. 31 Capital - Deidre Jackson ....... 2,000.00
To record owner withdrawal.
d) Cash Disbursements Journal
Date Debit Account Amount
Oct. 1 Rent Expense ................... 2,500.00
To record payment of rent.
Oct. 10 Wages Expense .................. 1,500.00
To record payment of wages.
Oct. 18 Accounts Payable ............... 1,600.00
To record payment of supplies purchase.
Oct. 30 Wages Expense .................. 1,500.00
To record payment of wages.
Oct. 28 Capital - Deidre Jackson ....... 2,000.00
To record owner withdrawal.
e) None of the above.
12) Write the general journal entry for the month's cash disbursements.
a) Capital - Diedre Jackson ................. 2,000.00
Cash .................................. 2,000.00
To record cash disbursements.
b) Capital - Deidre Jackson ................. 2,000.00
Rent Expense ............................. 2,500.00
Wages Expense ............................ 1,500.00
Cash .................................. 6,000.00
To record cash disbursements.
c) Capital - Deidre Jackson ................. 2,000.00
Rent Expense ............................. 2,500.00
Wages Expense ............................ 1,500.00
Accounts Payable ......................... 1,600.00
Depreciation Expense ..................... 300.00
Cash .................................. 7,600.00
To record cash disbursements.
d) Capital - Deidre Jackson ................. 2,000.00
Rent Expense ............................. 2,500.00
Wages Expense ............................ 3,000.00
Accounts Payable ......................... 1,600.00
Cash .................................. 9,100.00
To record cash disbursements.
e) None of the above.
13) Find the reconciled cash balance starting from the book balance.
a) Bank reconciliation as at Oct. 31, 200x.
Book Balance ............................. $1,720.00
Add: Error .......................... 100.00
Deduct: Fees ........................ 20.00
Reconciled Balance ....................... 1,800.00
b) Bank reconciliation as at Sept. 30, 200x.
Book Balance ............................. $1,720.00
Add: Error .......................... 100.00
Deduct: Fees ........................ 20.00
Reconciled Balance ....................... 1,800.00
c) Bank reconciliation as at Oct. 31, 200x.
Book Balance ............................. $1,720.00
Add: ................................ 0.00
Deduct: Fees and Error ............... 120.00
Reconciled Balance ........................ 1,600.00
d) Bank reconciliation as at Oct. 31, 200x.
Book Balance ............................. $1,720.00
Add: Fees and Error ................. 120.00
Deduct: ............................. 0.00
Reconciled Balance ....................... 1,840.00
e) None of the above.
14) Find the reconciled cash balance starting from the bank balance.
a) Bank reconciliation as at Nov. 4, 200x.
Bank Balance ............................. $3,600.00
Add: Deposits-in-Transit ............ 1,700.00
Deduct: o/s Checks .................. 3,500.00
Reconciled Balance ....................... 1,800.00
b) Bank reconciliation as at Oct. 31, 200x.
Bank Balance ............................. $3,600.00
Add: Deposits-in-Transit ............ 1,500.00
Deduct: o/s Checks .................. 3,500.00
Reconciled Balance ....................... 1,600.00
c) Bank reconciliation as at Oct. 31, 200x.
Bank Balance ............................. $3,600.00
Add: Deposits-in-Transit ............ 1,700.00
Deduct: o/s Checks .................. 3,500.00
Reconciled Balance ....................... 1,800.00
d) Bank reconciliation as at Oct. 31, 200x.
Bank Balance ............................. $3,600.00
Add: Deposits-in-Transit ............ 1,900.00
Deduct: o/s Checks .................. 4,400.00
Reconciled Balance ....................... 1,100.00
e) None of the above.
15) Write the general journal entry that results from the bank reconciliation.
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