Question :
137. Cardinal Company’s bank statement showed a balance at May 31 : 1229758
137. Cardinal Company’s bank statement showed a balance at May 31 of $180,974. The only reconciling items consisted of a large number of outstanding checks totaling $51,847. At May 31, what balance should Cardinal’s Cash account show?
A. $232,821.
B. $129,127.
C. $77,280.
D. Some other amount.
138. On January 1, Wong Company established a petty cash fund of $300. The journal entry to record the replenishment of the fund for $260 at the end of January includes:
A. A debit to Petty Cash of $260.
B. A credit to Cash of $260.
C. A debit to various expenses of $40.
D. No journal entry; an entry is needed only when the petty cash fund is created or discontinued.
139. Red Pine, Inc. established a $400 petty cash fund several months ago and replenishes it at the end of each month. During the first two weeks of March, $185 was disbursed from the petty cash box for miscellaneous items. If a surprise count of the fund is made on March 15, the petty cash box should contain:
A. $400 cash.
B. $215 cash.
C. $215 cash left for March plus $400 cash for each month since creation of the petty cash fund.
D. $215 cash and receipts for $185 in expenditures.
Kiley Company established a petty cash fund of $750 on January 1. On January 31, receipts for the following items were in the petty cash box:
140. The journal entry on January 1 to record establishment of the petty cash fund includes a:
A. Credit to Cash of $750.
B. Credit to Petty Cash of $750.
C. Debit to Petty Cash Expense of $750.
D. No journal entry is necessary, since no cash of the company has been disbursed yet.
141. The journal entry on January 31 to record replenishment of the petty cash fund includes:
A. A credit to Petty Cash for $575.
B. Debits to various expenses totaling $575.
C. A debit to Petty Cash for $575.
D. A debit to Cash for $575.
142. On January 1, Lucas established a petty cash fund of $350, which it replenishes at the end of each month. When a surprise count of the petty cash fund is made on March 5, the petty cash box contains $70 in cash and receipts for the following items:
This situation indicates:
A. Approximately $210 of petty cash has been invested in cash equivalents.
B. There were approximately $210 in cash disbursements made from the petty cash fund for the first two months of the year.
C. The petty cash expense recognized for the month of March is approximately $210.
D. There is approximately $210 of petty cash that is missing and unaccounted for at March 5.
143. Taylor, Inc. had accounts receivable of $310,000 and an allowance for doubtful accounts of $19,500 just before writing off as worthless an account receivable from Burton Company of $1,300. The net realizable value of the accounts receivable before and after the write-off were:
A. $290,500 before and $289,200 after.
B. $290,500 before and $290,500 after.
C. $310,000 before and $308,700 after.
D. $329,500 before and $328,200 after.
144. Bert had accounts receivable of $280,000 and an allowance for doubtful accounts of $10,800 just before writing off as worthless an account receivable from Ernie Company of $1,600. After writing off this receivable what would be the balance in Bert’s Allowance for Doubtful Accounts?
A. $10,800 credit balance.
B. $12,400 credit balance.
C. $9,200 credit balance.
D. $9,200 debit balance.
145. At December 31, before adjusting and closing the accounts had occurred, the Allowance for Doubtful Accounts of Seaboard Corporation showed a debit balance of $3,200. An aging of the accounts receivable indicated the amount probably uncollectible to be $2,100. Under these circumstances, a year-end adjusting entry for uncollectible accounts expense would include a:
A. Debit to the Allowance for Doubtful Accounts for $1,100.
B. Credit to the Allowance for Doubtful Accounts for $1,100.
C. Debit to Uncollectible Accounts Expense of $2,100.
D. Debit to Uncollectible Accounts Expense of $5,300.
146. Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting entry to recognize this expense at the end of each month. During the month of July, the company wrote-off a $3,500 receivable and made no recoveries of previous write-offs. Following the adjusting entry for July, the credit balance in the Allowance for Doubtful Accounts was $3,000 larger than it was on July 1. What amount of uncollectible account expense was recorded for July?
A. $2,500.
B. $1,000.
C. $1,500.
D. $6,500.
