A company set- up a petty cash fund with $800. The disbursements are as follows: Office supplies- $300 Shipping- 50 Postage- 30 Delivery expense- $350 To replenish the petty cash fund, the journal entry would include ? A. Credit cash and debit postage B. Credit petty cash and debit cash C. Debit petty cash and credit cash D. Debit postage and credit cash
Added by -Scar S.
Step 1
A set amount of money is kept on hand, and as it is spent, records are kept of what the money was used for. When the fund gets low, it is replenished to its original amount, and the expenses are recorded in the company's financial records. Show more…
Show all steps
Your feedback will help us improve your experience
Azat Nurmukhametov and 70 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Record entries in general journal form to record the following: Established a Petty Cash Fund, $100. Issued Ck. No. 587. Reimbursed the Petty Cash Fund for expenditures of $89: Store Supplies, $39; Office Supplies, $20; Miscellaneous Expense, $30. Issued Ck. No. 595. Increased the amount of the fund by an additional $75. Issued Ck. No. 597. Reimbursed the Petty Cash Fund for expenditures of $97.50: Store Supplies, $36.50; Delivery Expense, $41.00; Miscellaneous Expense, $20.00. Issued Ck. No. 599.
Akash M.
The petty cash fund of Guiguinto Company on December 31 is composed of the following: Coins and currencies: P14,000 Petty cash vouchers: Gasoline payments: P3,000 Supplies: P1,000 Cash advances to employees: P2,000 Employee's check returned by bank marked NSF: P5,000 Check drawn by the company payable to the order of the petty cash custodian, representing her salary: P20,000 A sheet of paper with names of employees together with contribution for a birthday gift of a co-employee in the amount of P8,000 Total: P53,000 The petty cash ledger account has an imprest balance of P50,000.
Which of these transactions requires a debit entry to Cash? A. paid balance due to suppliers B. sold merchandise on account C. collected balance due from customers D. purchased supplies for cash
Analyzing and Recording Transactions
Use Journal Entries to Record Transactions and Post to T-Accounts
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD