1. Crimpson Company had the following petty cash transaction during January 2016:

Jan. 1  Established a petty cash fund of $200

12  Reimbursed the fund for the following expenses:

Supplies expense       $65.00

Postage expense         45.00

Miscellaneous expenses  25.00

Petty cash on hand prior to reimbursement was $68.00

28  Reimbursed the fund for the following expenses:

Supplies expense       $75.00

Miscellaneous expenses  35.00

Petty cash on hand prior to reimbursement was $86.00

31 Reduced the amount of the fund to $150.00

Required: Prepare the journal entries for the above January petty cash

fund transactions.

2. Lexington Heating LLC records cash receipts deposited on a daily basis. All cash disbursements are made by checks. These disbursements are also recorded on a daily basis.

The following information is provided for July 2016:

Lexington general ledger checking account balance at July 31, 2016 was $4,634.

The bank statement checking account balance was $4,884 at July 31, 2016.

Cash receipts recorded for July 2016 in Lexington’s accounting records, but did not appear on the bank statement, totaled $487.

Bank memos previously not available to Lexington are included in the bank statement. These memos includes a NSF check received from a customer for $143. Also, the were bank services charges of $11 for new checks ordered. Another memo advices Lexington that $543 has been deposited in their checking account ($550 less the bank charge of $7). This represents the net proceeds of a collection the bank had made on behalf of Lexington on a $550 note receivable.

Checks written and recorded during July in Lexington’s accounting, but not included in the bank statement includes the following checks:

Ck no. 1311  $ 59

Ck no. 1312  $ 91

Ck no. 1313  $120

Ck no. 1314  $ 74

Ck no. 1315  $ 35

Check 1146 was recorded in Lexington’s accounting recordings at $345 and listed in the bank statement at $543. This was not a bank error.

Checks that were outstanding as of 30 June 2016 included check no. 1115 $167 and check no. 1118 $197. Check no. 1118 was paid in the bank statement and check 1115 was not.

Required: Prepare a bank reconciliation at July 31, 2016.

3. Timken Inc. made $900,000 in sales during 2016. Twenty-five percent of these were cash sales. During the year, $22,500 of accounts receivable were written off as being uncollectible. In addition, $13,500 of the accounts that were written off in 2015 were unexpectedly collected. At its’ year-end December 31, 2016, Timken had $225,000 of accounts receivable. The balance in the Allowance for Doubtful Accounts general ledger account was $13,500 credit at December 31, 2015.

Required:

• Prepare journal entries to record the following 2016 transactions:

1. The write-off of $22,500
2. The recovery of $13,500

• Recalculate the balance in the Allowance for Doubtful Accounts general ledger account at December 31, 2016.
• The estimated uncollectible accounts at December 31, 2016 are calculated as follows:

Required: Prepare the adjusting entry required at December 31, 2016.

4. Zinc Inc. worksheet for the preparation of its 2016 statement of cash flows included the following:

Zinc’s 2016 net income is $165,000. What amount should Zinc include as net cash provided by operating activities in the statement of cash flows?