At the end of the month, employees have made the following expenditures from the petty cash fund and with company-issued credit cards. None of these transactions has been recorded previously.

Supplies (petty cash) $ 50

Delivery (petty cash) $ 75

Advertising (credit card) $ 1,100

Equipment (credit card) $ 4,200

Accounting for these employee purchases would include a:

A) Credit to Cash for $5,425.

B) Credit to Accounts Payable for $5,300.

C) Credit to Equipment for $4,200.

D) Debit to Accounts Receivable for $5,300.

Answer: Credit to Accounts Payable for $5,300.

At the end of the month, employees have made the following expenditures from the petty cash fund and with company-issued credit cards. None of these transactions has been recorded previously.

Supplies (petty cash) $ 50

Delivery (petty cash) $ 75

Advertising (credit card) $ 1,100

Equipment (credit card) $ 4,200

Accounting for these employee purchases would include a:

A) Credit to Cash for $125.

B) Debit to Accounts Payable for $5,300.

C) Credit to Cash for $1,225.

D) Credit to Accounts Payable for $5,425.

Answer: Credit to Cash for $125.

A minor amount of cash kept on hand to pay for small purchases is referred to as a:

A) Petty cash fund.

B) Cash receipts fund.

C) Cash payments fund.

D) Cookie jar fund.

Answer: Petty cash fund.

A company-issued debit card or credit card is often referred to as a:

A) Budget care.

B) Allowance card.

C) Purchase card.

D) Receipt card.

Answer: Purchase card.

The balance shown in the August bank statement of a company was $23,200. After examining the August bank statement and items included with it, the company's accountant found:

Checks outstanding $ 4,300

NSF check 140

Note collected by bank for the Colt Company 1,200

Deposits outstanding 1,800

Bank service fees 60

What is the amount of cash that should be reported in the balance sheet as of August 31?

A) $20,700.

B) $17,200.

C) $18,700.

D) $22,200.

Answer: $20,700.,

The balance in a company's Cash account on August 31 was $19,700, before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company's accountant found:

Checks outstanding $ 4,300

NSF check 140

Note collected by bank for the Colt Company 1,200

Deposits outstanding 1,800

Bank service fees 60

What is the amount of cash that should be reported in the balance sheet as of August 31?

A) $20,700.

B) $17,200.

C) $18,700.

D) $22,200.

Answer: $20,700.,

The following data were obtained from the bank statement and from the process of reconciling the bank balance with the company's cash balance:

Bank service charges $ 20

Deposit outstanding $ 150

Interest earned on the bank account $ 10

Checks outstanding $ 400

Which items should be deducted from and added to the bank balance in completing the reconciliation?

A) Deduct checks outstanding; add service charges and deposit outstanding.

B) Deduct interest earned; add deposit outstanding.

C) Deduct checks outstanding; add deposit outstanding.

D) Deduct deposit outstanding; add checks outstanding.

Answer: Deduct checks outstanding; add deposit outstanding.