Not being able to locate any more errors, you make necessary entry to balance the cash book.
On June 15 you recalled a cash sale of merchandise $14.50 made on June 7 but not recorded.
On July 7 A. B. Potter returned your statement, saying he paid $75 on account June 7 which you had failed to credit him with.
Make the necessary adjusting entries.
24. (a) Show by journal entry the proper booking of the following transactions, indicating any items not to be posted:
- 1. Creation of a petty cash fund of $100.
- 2. Petty cash disbursements summarized:
- Office stationery and printing $35.
- Stamps and postage $30.
- Delivery expense $10.
- General expense $5.
- Repairs to furniture $15.
- 3. The petty cash fund is replenished.
(b) Set up the petty cash account in the ledger and show all postings to it.
25. The following balances are found on the books of a trading concern at the end of its first fiscal year:
| Inventory Merchandise | $ 4,312.09 |
| Salaries | 4,622.89 |
| Capital Stock | 10,000.00 |
| Real Estate, Buildings, and Fixtures | 17,500.00 |
| Sales | 8,469.10 |
| Notes Payable (Merchandise Creditors) | 5,000.00 |
| Mortgage Bonds Issued | 15,000.00 |
| Customers’ Accounts | 5,423.23 |
| Accounts Payable (Merchandise Creditors) | 2,436.28 |
| Notes Payable, Bank | 5,000.00 |
Total merchandise purchases as per invoices on file, less inventory, show the cost of merchandise sold to be 97% of sales. The cash at bank and in hand amounted to $1,302.14.