1 Chapter 7 Cash receipts and Cash Payments Journals 现金收入和现金支出日记账

2 How Much Cash Should a Business Have? Accounts receivable Cash Collections from customers Cash payments

3 Cash receipts Journal all transaction involving ( 现金收入日记账 ) receipts of cash(on page154) Cash payments Journal all transaction involving ( 现金支出日记账 ) payment of cash(on page 158) Cash Receipts/Payments Journals

4 Cash Receipts transactions Transaction Dr Cr Investment to start business cash capital Sales for cash cash sales Sales discount cash, sales discount A/R Disposal of equipment cash equipment

5 Cash Payments transactions Transaction Dr Cr buy insurance policy prepaid insurance cash cash purchase purchase cash purchases discount A/P purchases discount,cash Purchase equipment equipment cash Pay expense expense cash

6 Cash( 货币资金 ) Coins and paper money Checks Money orders 汇票 / 汇款单 Bank drafts 银行本票 Bank credit card receipts Cash is defined as any deposit banks will accept.

7 Slide 7-7 Combined with cash on balance sheet Reporting Cash in the Balance Sheet Liquid short- term investments Stable market values Matures within 90 days of acquisition Cash Equivalents 现 金等价物 Money market funds 货币市场基金 T-bills High-grade commercial paper

8 Cash disbursement Checking account/checking account 支票账户 -- An account with the bank against which one can issue checks for payments -- signature card 印鉴卡 Practice: Issuing a check (with sample checks)

9 Check Outstanding check 在途支票 / 未兑现支票 the check which has been issued but not honored by the payee Cancelled check 已兑现支票 the check which has been issued and honored by the payee

10 Shows the beginning bank balance, deposits made, checks paid, other debits and credits in the month, and the ending bank balance. Bank Statement Bank Statement 银行对账单 / 银行结单

11 Bank Reconciliation Statement Is the cash reported on bank statement equal to the cash balance in depositor ’ s accounting records?

12 Bank Reconciliation Statement 银行存款余额调节表 Explains the difference between cash reported on bank statement and cash balance in depositor’s accounting records. Possible reasons for the difference (on page 172)

13 Reconciling the Bank Statement Balance per Bank + Deposits in Transit 在途存款 -Outstanding Checks 未兑现支票 ± Bank Errors = Adjusted Balance Balance per Depositor + collections by Bank (credit memos) - Service Charge - NSF Checks (debit memos) ± Book Errors = Adjusted Balance

14 Reconciling the Bank Statement All reconciling items on the book side require an adjusting entry to the cash account. Balance per Depositor + collections by Bank (credit memos) - Service Charge -NSF Checks (debit memos) ± Book Errors = Adjusted Balance

15 Example on page 173 Bank Reconciliation Statement 银行存款余额调节表

16 Reconciling the Bank Statement Example Prepare a July 31 bank reconciliation statement and the resulting journal entries for the Simmons Company. The July 31 bank statement indicated a cash balance of $9,610, while the cash ledger account on that date shows a balance of $7,430. Additional information necessary for the reconciliation is shown on the next page.

17 Outstanding checks totaled $2,417. A $500 check mailed to the bank for deposit had not reached the bank at the statement date. The bank returned a customer’s NSF check for $225 received as payment of an account receivable. The bank statement showed $30 interest earned on the bank balance for the month of July. Check 781 for supplies cleared the bank for $268 but was erroneously recorded in our books as $240. Amount of$486 was erroneously credited to our account by the bank. Outstanding checks totaled $2,417. A $500 check mailed to the bank for deposit had not reached the bank at the statement date. The bank returned a customer’s NSF check for $225 received as payment of an account receivable. The bank statement showed $30 interest earned on the bank balance for the month of July. Check 781 for supplies cleared the bank for $268 but was erroneously recorded in our books as $240. Amount of$486 was erroneously credited to our account by the bank.

18 Reconciling the Bank Statement Example

19 Reconciling the Bank Statement Example

20 Cash Over Actual cash receipt > cash register tape record Cash short Actual cash receipt < cash register tape record Cash over and short Cash shortCash over Cash Over and Short 现金溢缺

21 Slide 7-21 Cash Over and Short is debited for shortages and credited for overages. On May 5, XBAR, Inc.’s cash drawer was counted and found to be $10 over. Cash Over and Short 现金溢缺

22 assignment assignment to be done after class --- Problem 3 (p 185)