a) While examining cash receipts information, the accounting department determined the following information: opening cash balance $208, cash on hand $1,562.53, and cash sales per register tape $1,372.20.
Prepare the required journal entry based upon the cash count sheet.
b) The following information pertains to Ghose Company.
| 1. | Cash balance per bank, July 31, $8,094. | |
| 2. | July bank service charge not recorded by the depositor $50. | |
| 3. | Cash balance per books, July 31, $8,130. | |
| 4. | Deposits in transit, July 31, $3,466. | |
| 5. | Note for $2,766 collected for Ghose in July by the bank, plus interest $48 less fee $32. The collection has not been recorded by Ghose, and no interest has been accrued. | |
| 6. | Outstanding checks, July 31, $698. |
(a) Prepare a bank reconciliation at July 31, 2012.
c) Merrick Company expects to have a cash balance of $60,690 on January 1, 2012. These are the relevant monthly budget data for the first two months of 2012.
| 1. | Collections from customers: January $85,690, February $160,690 | |
| 2. | Payments to suppliers: January $54,690, February $89,690 | |
| 3. | Wages: January $31,997, February $41,997. Wages are paid in the month they are incurred. | |
| 4. | Administrative expenses: January $22,997, February $25,997. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. | |
| 5. | Selling expenses: January $16,997, February $21,997. These costs are exclusive of depreciation. They are paid as incurred. | |
| 6. | Sales of short term investments in January are expected to realize $13,997 in cash. Merrick has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $34,690. |
Prepare a cash budget for January and February.