In your count of petty cash fund in the morning of January 5, 2022 revealed the following: Bills and coins - P3,560 Paid vouchers dated Dec 2021 - P2,140 Paid vouchers dated Jan 2022 - P1,130 IOUs with supporting vouchers dated Dec 2021 - P1,600 dated Jan 2022 - P1,000 Unsigned payroll envelope (opened, money is missing) - P2,000 The imprest balance of the petty cash fund is P10,000. What is the required adjusting entry (compound form) at December 31, 2021 to bring the petty cash fund to the correct amount? a. Debit Expenses - 2,140; Debit Receivable from Employees- 1,600; Debit Cash Short and Over - 2,570; Credit Cash in Bank - 6,310 b. Debit Expenses - 2,140; Debit Receivable from Employees - 1,600; Debit Cash Short and Over - 570; Credit Petty Cash Fund - 4,310 c. Debit Expenses - 3,270; Debit Receivable from Employees - 2,600; Debit Cash Short and Over - 570; Credit Petty Cash Fund - 6,640 d. Debit Expenses - 2,140; Debit Receivable from Employees - 1,600; Debit Cash Short and Over 2,570; Credit Petty Cash Fund - 6,310
In your count of petty cash fund in the morning of January 5, 2022 revealed the following:
Bills and coins - P3,560
Paid vouchers dated Dec 2021 - P2,140
Paid vouchers dated Jan 2022 - P1,130
IOUs with supporting vouchers
dated Dec 2021 - P1,600
dated Jan 2022 - P1,000
Unsigned payroll envelope
(opened, money is missing) - P2,000
The imprest balance of the petty cash fund is P10,000.
What is the required
a. Debit Expenses - 2,140; Debit Receivable from Employees- 1,600; Debit Cash Short and Over - 2,570; Credit Cash in Bank - 6,310
b. Debit Expenses - 2,140; Debit Receivable from Employees - 1,600; Debit Cash Short and Over - 570; Credit Petty Cash Fund - 4,310
c. Debit Expenses - 3,270; Debit Receivable from Employees - 2,600; Debit Cash Short and Over - 570; Credit Petty Cash Fund - 6,640
d. Debit Expenses - 2,140; Debit Receivable from Employees - 1,600; Debit Cash Short and Over 2,570; Credit Petty Cash Fund - 6,310
Trending now
This is a popular solution!
Step by step
Solved in 2 steps