1. An examination of the petty cash fund on the morning of January 2, 2021, discloses the following items in the petty cash drawer. Currency and coins P 152.00 Postage Stamps 29.00 An I.0.U from Flores, an employee for cash advance 400.00 Check payable to Ester Company from Andres, an employee, marked NSF 340.00 Vouchers for the following: Stamps 200.00 Computer repairs 1,843.50 2,043.50 2,964.50

1. An examination of the petty cash fund on the morning of January 2, 2021, discloses the following items in the petty cash drawer. Currency and coins P 152.00 Postage Stamps 29.00 An I.0.U from Flores, an employee for cash advance 400.00 Check payable to Ester Company from Andres, an employee, marked NSF 340.00 Vouchers for the following: Stamps 200.00 Computer repairs 1,843.50 2,043.50 2,964.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kk.435.
You are placed in charge of a $200 petty cash fund. On December 31, 20-2, at the end of the fiscal year, $30 in currency and coin remain in the fund. The expenditures from the fund up to this point were $105 for office supplies and $65 for delivery expense (ignore HST). You do not have the fund replenished until January 6, 20-3. (A-8) Explain why the petty cash fund should have been replenished on December 31, 20–2. Quote the above situation in detail and do the journal entry
Carla Vista Company established a petty cash fund on May 1, cashing a cheque for $150.00. The company replenished the fund on June 1 and July 1 with the following results. June 1: July 1: Cash in fund, $4.75 Receipts: Delivery expense Postage expense Travel expense Cash in fund. $3.25 Receipts: Delivery expense Entertainment expense Supplies $34.15 36.50 61.35 $30.00 69.45 47.30
On September 29, the company determined that the petty cash fund needed to be increased to $1,000. What is the correct journal entry?
23.At the end of the accounting period, the petty cash fund/drawer showed petty cash vouchers for expenses paid from the fund that have not been reimbursed. If no adjusting entry is made at year end, a. cash will be understated and expenses will be overstated. b. cash will be overstated and expenses will be understated c. cash and net income will be understated. d. cash and expenses will be overstated.
2. The petty cash fund was established on April 10, 2020, in the amount of $300. These are the following expenditure made by petty cash custodian: Postage expense Mailing labels and other supplies 1.O.U from employees Shipping charges (to customer) Newspaper advertising Miscellaneous expense $27 $75.25 $25 $47.50 $33 $47.25 On April 30, 2020 the petty cash fund was reimbursed when the cash in the fund is at $25. Prepare the journal entries for the establishment of the fund and the reimbursement.
The LLYOD bank statement for the month of June shows that there is $13,300 difference with the cash balance per book. The difference occurs on the 12 of June as one of the customers’ outstanding check has been returned because of not sufficient fund. Record the required entries at the end of June.
11. The accountant for ABC established a petty cash fund of P2,000. During October. The fund was depleted by the following disbursements: Shipping expense, P850 Travel expense, P300 Postage expense, P190 Miscellaneous supplies, P195 In addition to receipts for the above items, the petty cash box contained P10 in coins and an IOU of P45 from the secretary handling the fund. The company uses a cash over and short expense account, as needed. The company decided to decrease the petty cash fund to P1,600. Determine the amount of cash short/ over. (sample answer – 100 short or 100 over) The correct answer is: 410 short
7. Journalize the entries to record the following: established a petty cash fund of $350 The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following receipts: office supplies, 116; Sep 1 Sep 30 postage $100. Record any discrepancy in the cash short and over account. D Focus
At the end of the day, the cash register tape shows $1,360 in cash sales, but the count of cash In the register is $1,460. The proper entry to account for this excess is:
A company recorded its August 15 receipts on its books as P142,000. However, the receipts were actually P124,000. The deposit slip for the bank was prepared correctly as P124,000. What adjustment is needed to the Cash balance per books? Choices: Increase by P18,000 Decrease by P18,000 Erase the wrong amount No adjustment needed