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Murdstone, Inc You ve just been hired as an accountant at Murdstone, Inc., a retailer of supplies for arts and crafts. Since the previous accountant left his position suddenly, the controle of Murdoton Inc. has asked for your assistance in filling in some missing data for the company's January accounting records. You'll also be responsible for training the company's new accounting Intern Chart of Accounts CHART OF ACCOUNTS Murdstone, Inc. General Ledger ASSETS 110 Cash REVENUE 410 Sales 610 Interest Revenue 111 Petty Cash 112 Accounts Receivable 115 Inventory 116 Store Supplies 117 Office Supplies 118 Prepaid Insurance EXPENSES 510 Cost of Goods Sold 516 Cash Short and Over 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 531 Rent Expense 120 Land 123 Store Equipment 124 Acoumulated Depreciation Store Equipment 125 Office Equipment 110 Cash 410 Sales 610 Interest Revenue 111 Potty Cash 112 Accounts Receivable 115 Inventory 116 Store Supplies 117 Office Supplies 118 Prepaid Insurance 120 Land 123 Store Equipment 124 Accumulated Depreciation Store Equipment 125 Office Equipment 126 Accumulated Depreciation Office Equipment 131 Notes Receivable EXPENSES 510 Cost of Goods Sold 510 Cash Short and Over 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 531 Ront Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Bank Service Charger 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 539 Miscellaneous Administrative Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Cash Short and Over The controller has completed the accounts for the Cash and Sales accounts as of January 30, but needs to attend an important conference in another city. She has requested that you prepare the account for the Cash Short and Over account as of January 30 also. You are told that the balance of the account is zero as of the beginning of January, and that all the company's sales are in cash. To simply, this problem assumes that a company has only one bank account, which is identified in the Ledger as "Cish Aeview the following accounts, and then scroll down to complete the Cash Short and Over Taccount and answer the associated question that follows it. Cash 5.500 Balance 1/1 500 1/2 Establish Petty Cash 1/5 2.775 1/12 6,330 1/23 3,270 1/30 4.450 Balance 21.825 Sales Balance 1/1 0 1/5 2.780 1/12 6,300 1/23 3,330 4.410 1/30 Review the following accounts, and then scroll down to complete the Cash Short and Over Taccount and answer the associated question that follows Cash Balance 1/1 5,500 1/2 Establish Potty Cash 500 1/5 2,775 1/12 6,330 1/23 3,270 1/30 4.450 Balance 21,825 Sales Balance 11 0 1/5 2,780 1/12 6,300 1/23 3,330 1/30 4,410 Balance 16,820 Review the preceding Taccounts, and then complete the Cash Short and Over T account and associated question that follows it Cash Short and Over Balance 1/1 0 1/5 $ Balance Petty Cash Murdstone, Inc. issued a check on January 2 10 establish a petty cash tund of $500. On January 31, the amount of cash in the petty cash fund is 5439. The company would like to issue a check to replenish the fund, based on the following summary of petty cash receipts Account Office Supplies Miscellaneous Administrative Expense Amount on Receipt $32.00 $23.00 The company's policy is to record any missing funds in the Cash Short and Over account. The new intern has prepared a proposed journal entry to record the replenishing of the petty cash tund PAGE 17 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. RIT DET CREDIT ASSETS LIABILITIES COUNTY 55.00 fan.31 Petty Cash Cash 2 55.00 Prepare for your discussion with me town by journalizing the correct entry for the openishment of the petty cash rond. Refer to the Chart of Accounts for exact wording of accounts PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTER DENT CRCORT ASSETS LATIES EQUITY 1 2 The company accounting intem has prepared the end of January back reconciliation from the back statement, and is worried because the Adjusted Balance amounts do not agree her reviewing the bank reconellation, coroll down for the next stop in helping the intem Murdstone, Inc Bank Reconciliation January 31, 2017 $23.55798 $12.125 25 Cash balance according to bank statement Adjustments Deposit in transit an laruary 31 Outstanding Check No 124 Outstanding Check No. 125 Outstanding Check No. 129 Totat adjustments + 16200 157001 0.250.00) 10756.25 55431425 #Adjusted balance $51,545.88 $15.25075 Cash balance according to Murdttone, Inc. 11 Adjustments Note and interest collected by bank 13 Check returned because of insufficient funds Bark service charge 1 Error in recording Check No 123 (23,475:40) (25000) 09.000.00 747465 mu January 31, 2017 $25.55798 $12,125 25 Cash balance according to bank statement Adjustment Deposit in transit on January 31 Outstanding Check No. 124 Outstanding Check No 125 Outstanding Check No. 129 Total adjustments Adjusted balance (62.00) (57.00) (1.250.00) 1 10.75625 $54,314.23 551545.88 Cash balance according to Murdstone, Inc. 11 Adjustments: 11 Note and interest collected by bank 11 Check retumed because of insufficient funds 14 Bank service charge $15,250.75 (25,475.40) (25000) (9.000.00) 1 Enror in recording Check No. 123 10 Total adjustments (1747465) 1 Adjusted balance $34,071.23 You assist the intern to check source documents, and find that most of the dollar amounts are correct; however, we dollar amounts are incorrect. After reviewing the following table, como down for the next steps in helping the intem If "No,"Corrected Amount Correct in Intern's Reconciliation? Yes Yes Yes No $75.00 Yes Item Cash balance according to bank statement Depout in transit on January 31 Outstanding Check No 12 Outstanding Check No. 125 Outstanding Check No. 129 Cash balance according to Murdstone, Inc. Check retumed because of insufficient funds Note and interest collected by bank Bank service charge Murdstone error in recording Check No. 123 as $12,435.00 rather than the correct amount of $21.435.00 Yes Yes No 525.00 Yes Atur asking the intern to search for other errors by comparing her reconciliation to prior bank reconciliations propared by the former accountant, you work together to compute the corrected Adjusted Balance. Enter your answer with two decimal places. Corrected Adjusted Balance amount: $