Answer:
1)
Bank account reconciliation:
Bank account balance $14,632.12
- outstanding checks ($1,320.25)
+ deposits in transit $575
- mistaken deposit, MIS, Inc. ($875)
adjusted bank account balance $13,011.87
Cash account reconciliation:
Cash account balance $23,742.87
+ error in check (rent) $18
- note paid by bank ($450)
- bank service charges ($14)
- NSF check ($85)
- petty cash fund ($200)
- investment in T-bills ($10,000)
adjusted cash account balance $13,011.87
2)
Dr Cash 18
Cr Rent expense 18
Dr Notes payable 100
Dr Interest expense - notes payable 350
Cr Cash 450
Dr Bank service charges 14
Cr Cash 14
Dr Accounts receivable 85
Cr Cash 85 (NSF check)
Dr Office expenses 200
Cr Petty cash fund 200
Dr Petty cash fund 200
Cr Cash 200
Dr Investment in Treasury Bills (2 months) 5,000
Dr Investment in Treasury Bills (6 months) 5,000
Cr Cash 10,000
3)
Current assets:
Cash $13,011.87
Petty cash fund $200
Investment in Treasury Bills (2 months) $5,000
<u>Investment in Treasury Bills (6 months) $5,000</u>
total cash and cash equivalents $23,211.87
