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Problem 7-12 Bill Jovi is reviewing the cash accounting for Cheyenne, Inc., a local mailing service. Jovi's review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2020. He has collected the following information from Cheyenne's bookkeeper for this task. Petty Cash 1. The petty cash fund was established on May 10, 2020, in the amount of $287.50. 2. Expenditures from the fund by the custodian as of May 31, 2020, were evidenced by approved receipts for the following: Postage expense Mailing labels and other supplies I.O.U. from employees Shipping charges (to customer) Newspaper advertising Miscellaneous expense $37.95 74.75 34.50 66.07 26.22 17.65 On May 31, 2020, the petty cash fund was replenished and increased to $345.00; currency and coin in the fund at that time totaled $30.36. Bank Reconciliation THIRD NATIONAL BANK BANK STATEMENT Disbursements Balance, May 1, 2020 Deposits Note payment direct from customer interest of $34.50) Checks cleared during May $35,822.50 Bank service charges 31.05 Balance, May 31, 2020 Receipts Balance $10,084.35 $32,200.00 1,069.50 7,500.30 Cheyenne's Cash Account Balance, May 1, 2020 Deposits during May 2020 Checks written during May 2020 $ 10,177.50 35,650.00 (36,610.25 ) Deposits in transit are determined to be $3,450.00, and checks outstanding at May 31 total $977.50. Cash on hand (besides petty cash) at May 31, 2020, is $282.90. Prepare the journal entries to record the transactions related to the petty cash fund for May. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To establish petty cash fund) 2. (To record expenditures from the fund) 3. (To replenish petty cash fund) Prepare a bank reconciliation dated May 31, 2020, proceeding to a correct cash balance, and prepare the journal entries necessary to make the books correct and complete. (Enter answers to 2 decimal places, e.g. 125.62. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) CHEYENNE, INC. Bank reconciliation May 31, 2020 $ $ No. Account Titles and Explanation Debit Credit 1. (To record the collection of the note) 2. (To record bank service charges) What amount of cash should be reported in the May 31, 2020, balance sheet? (Enter answer to 2 decimal places, e.g. 125.62.) Cash to be reported Click if you would like to Show Work for this question: Open Show Work List of Accounts Problem 7-12 Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Allowance for Sales Returns and Allowances Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Equity Investments Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Investment Loss on Sale of Receivables Maintenance and Repairs Expense Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Office Supplies Owner's Drawings Petty Cash Postage Expense Prepaid Postage Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue

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