Cash investment
1/1/X1, XYZ’s owner contributed cash of 100,000.
| 1/1/X1 | 1.1.X1 | |||
| Cash: Cash in bank | 100,000 |
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| Paid-in Capital | 100,000 |
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Cash loan
1/1/X1, XYZ received a 100,000 loan from a bank.
| 1/1/X1 | 1.1.X1 | |||
| Cash: Cash in bank | 100,000 |
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| Loan | 100,000 |
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Cash purchase and sale
1/1/X1, XYZ bought merchandise for 50,000. 1/2/X1, it sold it for 100,000.
| 1/1/X1 | 1.1.X1 | |||
| Merchandise | 50,000 |
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| Cash: Cash in bank | 50,000 |
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| 1/2/X1 | 2.1.X1 | |||
| Cash: Cash in bank | 100,000 |
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| Revenue | 100,000 |
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| Cost of goods sold | 50,000 |
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| Merchandise | 50,000 |
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Cash equivalent
1/1/X1, XYZ acquired a 90-day certificate of deposit for 100,000. 3/31/X1, it received 100,496.
Implying an annual interest rate of 1.9988% = ((1 + 496 ÷ 100000)4) - 1
| 1/1/X1 | 1.1.X1 | |||
| Cash equivalents: Certificate of deposit | 100,000 |
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| Cash: Cash in bank | 100,000 |
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| 3/31/X1 | 31.3.X1 | |||
| Cash: Cash in bank | 100,496 |
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| Cash equivalents: Certificate of deposit | 100,000 |
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| Interest revenue | 496 |
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Security
1/1/X1 XYZ acquired a 90 day, 100,000 note for 99,506 and held it to maturity.
Implying an annual interest rate of 2.0006%.
Determined using Excel's =RATE function adjusted for quarterly periodicity: 2.0006% = ((1+RATE(1,-100000,99506,0,0,10%))^4) - 1
| 1/1/X1 | 1.1.X1 | |||
| Cash equivalents: Very short-term security | 100,000 |
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| Cash equivalents: Deferred interest | 494 |
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| Cash: Cash in bank | 99,506 |
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| 3/31/X1 | 31.3.X1 | |||
| Cash: Cash in bank | 100,000 |
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| Cash equivalents: Very short-term security | 100,000 |
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| Cash equivalents: Deferred interest | 494 |
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| Interest revenue | 494 |
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Cash in transit
12/31/X1, XYZ withdrew 5,000 to replenish petty cash, paid rent of 250,000 and wages of 850,000 by bank transfer and received notice of an incoming 100,000 customer payment. Bank transfers cleared within 48 hours and the year-end bank balance was 2,000,000.
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XYZ Inc. Bank reconciliation schedule 12/31/X1 | 31.12.X1 |
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| Cash in bank (per bank statement) | 2,000,000 |
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| - | Unrealized bank transfer (rent) | (250,000) |
| - | Unrealized bank transfer (payroll) | (850,000) |
| + | Unrealized bank transfer (invoice sale) | 100,000 |
| Cash in bank (per balance sheet) | 1,000,000 |
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Same facts except, XYZ issued / received paper checks.
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XYZ Inc. Bank reconciliation table 12/31/X1 | 31.12.X1 |
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| Cash in bank (per bank statement) | 2,000,000 |
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| - | Check number 4568 | (250,000) |
| - | Checks number 4569 to4650 | (850,000) |
| + | Check number 532458 | 100,000 |
| Cash in bank (per balance sheet) | 1,000,000 |
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Same facts, except XYZ elected to journalize the cash in transit.
| 12/31/X1 | 31.12.X1 | |||
| Cash: Petty cash | 5,000 |
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| Rent | 250,000 |
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| Wages & salaries | 850,000 |
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| Cash: Cash in transit (clearing account) | 100,000 |
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| Cash: Cash in bank | 5,000 |
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| Cash: Cash in transit (clearing account) | 250,000 |
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| Cash: Cash in transit (clearing account) | 850,000 |
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| Receivables | 100,000 |
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| 1/2/X2 | 2.1.X2 | |||
| Cash: Cash in transit (clearing account) | 250,000 |
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| Cash: Cash in transit (clearing account) | 850,000 |
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| Cash: Cash in bank | 100,000 |
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| Cash: Cash in bank | 250,000 |
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| Cash: Cash in bank | 850,000 |
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| Cash: Cash in transit (clearing account) | 100,000 |
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Stamps and coupons
1/1/X1, XYZ purchased postage and revenue stamps with nominal values of 1,000 and 2,000 respectively. 1/2/X1, it mailed letters with postage of 100 and used revenue stamps to pay 200 in administrative fees.
| 1/1/X1 | 1.1.X1 | |||
| Cash equivalents: Postage stamps | 1,000 |
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| Cash: Petty cash | 1,000 |
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| Cash equivalents: Revenue stamps | 2,000 |
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| Cash: Petty cash | 2,000 |
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| 1/2/X2 | 2.1.X2 | |||
| Postage | 100 |
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| Cash equivalents: Postage stamps | 100 |
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| Taxes and fees | 200 |
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| Cash equivalents: Revenue stamps | 200 |
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Same fact except it purchased credit for a postage machine not stamps.
| 1/1/X1 | 1.1.X1 | |||
| Accruals: Pre-paid postage | 1,000 |
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| Cash: Petty cash | 1,000 |
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| 1/2/X1 | 2.1.X1 | |||
| Postage | 100 |
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| Accruals: Accruals: Pre-paid postage | 100 |
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Meal vouchers
1/1/X1, XYZ purchased employee meal vouchers with a nominal value of 60,000 for 60,600, paying the 1% fee to the issuer. 1/31/X1, it sold vouchers with a nominal value of 20,000 to its employees for 9,000.
| 1/1/X1 | 1.1.X1 | |||
| Cash equivalents: Vouchers | 60,000 |
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| Pre-paid employee benefits: Food and beverage | 600 |
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| Cash in bank | 60,600 |
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| 1/31/X / 31.1.X1 | |||
| Petty cash | 9,000 |
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| Payroll: Fringe benefits: Food and beverage | 11,200 |
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| Cash equivalents: Vouchers | 20,000 |
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| Pre-paid employee benefits: Food and beverage | 200 |
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