Exam 9: Cash Receipts, Cash Payments, and Banking Procedures

To transfer ownership of a check from one party to another, it is necessary to ____________________ the check.

Read each of the following transactions. Determine the accounts to be debited and credited. A) Issued a check for $2,500 to Jaime Gomez, the owner, as a cash withdrawal for personal use. B) Issued a check for $75 to establish a petty cash fund. C) Issued a check for $50 to replenish the petty cash fund. An analysis of the payments from the fund showed the following totals: Supplies, $25; Delivery Expense, $10; Miscellaneous Expense, $15.

The cash receipts journal for Carlson Company is shown below. Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

When a bank deducts any amount other than a paid check from a depositor's account, it issues a form called a(n) ____________________ memorandum.

A strong system of internal control requires that all payments be made by check except those made from a carefully controlled cash fund such as a petty cash fund.

A firm's bank reconciliation statement shows a book balance of $15,820, an NSF check of $400, and a service charge of $20. Its adjusted book balance is

Record the following transactions for the month of June 2013 on page 6 of a cash payments journal. Total, prove, and rule the cash payments journal as of June 30.

An NSF check from a customer.

The individual amounts in the Sales Credit column of the cash receipts journal are posted to the accounts receivable subsidiary ledger.

The most appropriate form of endorsement of a check for business purposes is

The cash receipts journal for Engels Company is shown below. Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

No end-of-month posting is required for the total of the Other Accounts Debit column of the cash payments journal.

The entry to record an additional cash investment by the owner is recorded in

Record the following transactions for the month of November 2013 on page 8 of a cash receipts journal. Total, prove, and rule the cash receipts journal as of November 30.

A check written by Bosley Co. for $168 was mistakenly recorded in the company records as $186.

A(n) ____________________ is a form received from the bank showing all transactions recorded in the depositor's account during the month.

Upon collection of the amount due on an interest-bearing promissory note from a customer, the accountant would debit Cash, credit Notes Receivable, and

The entry in a firm's accounting records for a credit customer's check that was returned by the bank marked "NSF" would include

A firm's bank reconciliation statement shows a book balance of $31,640, an NSF check of $800, and a service charge of $40. Its adjusted book balance is

The monthly bank statement should be received and reconciled by the employee who deposits cash receipts and writes the checks.