Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the petty cash fund is $442. The company would like to issue a check to replenish the fund, based on the following summary of petty cash receipts: Account Amount on Receipt Office Supplies $28.00 Miscellaneous Administrative Expense $23.00 The company’s policy is to record any missing funds in the Cash Short and Over account. The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund: JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Jan. 31 Petty Cash 51.00 ↑ 2 Cash 51.00 ↓ Prepare for your discussion with the intern by journalizing the correct entry for the replenishment of the petty cash fund. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4
Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the petty cash fund is $442. The company would like to issue a check to replenish the fund, based on the following summary of petty cash receipts: Account Amount on Receipt Office Supplies $28.00 Miscellaneous Administrative Expense $23.00 The company’s policy is to record any missing funds in the Cash Short and Over account. The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund: JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Jan. 31 Petty Cash 51.00 ↑ 2 Cash 51.00 ↓ Prepare for your discussion with the intern by journalizing the correct entry for the replenishment of the petty cash fund. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter7: Accounting For Cash
Section: Chapter Questions
Problem 6SEB
Related questions
Question
Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the petty cash fund is $442. The company would like to issue a check to replenish the fund, based on the following summary of petty cash receipts:
|
Account
|
Amount on Receipt
|
| Office Supplies | $28.00 |
| Miscellaneous Administrative Expense | $23.00 |
The company’s policy is to record any missing funds in the Cash Short and Over account.
The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund:
JOURNAL
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
|
1
|
Jan. 31
|
Petty Cash
|
|
51.00
|
|
↑
|
|
|
|
2
|
|
Cash
|
|
|
51.00
|
↓
|
|
|
Prepare for your discussion with the intern by journalizing the correct entry for the replenishment of the petty cash fund.
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
|
1
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2
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3
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4
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