BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Petty cash fund

Prepare journal entries for each of the following:

  1. a. Issued a check to establish a petty cash fund of $900.
  2. b. The amount of cash in the petty cash fund is $115. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $550, and miscellaneous selling expense, $200. Record any missing funds in the cash short and over account.

(a)

To determine

Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches. In day-to-day life, it becomes difficult to use checks for daily expenses. Therefore, companies maintain some minimum amount of funds in the hand for such daily expenses. These funds are called as petty cash funds. These funds are managed by custodian. This system is otherwise called as imprest system.

To prepare: Journal entry for petty cash fund.

Explanation
Petty Cash is an asset and is increased by $900. Hence, Petty Cash account is debited with $900...

(b)

To determine

To prepare: Journal entry for petty cash fund.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Identify and briefly compare the two leading stock exchanges in the United States today.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

List and describe the three functions of money.

Principles of Macroeconomics (MindTap Course List)

Explain how absolute advantage and comparative advantage differ.

Principles of Economics (MindTap Course List)

Why should policymakers think about incentives?

Essentials of Economics (MindTap Course List)

Discuss target market strategies

MKTG 12:STUDENT ED.-TEXT

When is a stock said to be in equilibrium? Why might a stock at any point in time not be in equilibrium?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)