S8-5 Journalizing petty cash

Learning Objective 4

Prepare the journal entries for the following petty cash transactions of Pawnee Gaming Supplies:

S8-8 Preparing a bank reconciliation

Learning Objective 5

The Cash account of Safety Security Systems reported a balance of $2,450 at December 31,
2016. There were outstanding checks totaling $1,700 and a December 31 deposit in transit of
$300. The bank statement, which came from Park Cities Bank, listed the December 31 balance
of $4,460. Included in the bank balance was a collection of $620 on account from Brendan
Ballou, a Safety customer who pays the bank directly. The bank statement also shows a $20
service charge and $10 of interest revenue that Safety earned on its bank balance. Prepare
Safety’s bank reconciliation at December 31.

Note: Short Exercise S8-8 must be completed before attempting Short Exercise S8-9.

S8-9 Recording transactions from a bank reconciliation

Learning Objective 5

Review your results from preparing Safety Security Systems’s bank reconciliation in Short
Exercise S8-8. Journalize the company’s transactions that arise from the bank reconciliation.
Include an explanation with each entry.

S8-10 Computing the cash ratio

Learning Objective 6

Super Banners reported the following figures in its financial statements:

Compute the cash ratio for Super Banners.