Havermill Co. establishes a $320 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $80 for Office Supplies, $144 for merchandise Inventory, and $29 for miscellaneous expenses. The fund has a balance of $25. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the increase in the fund balance on October 1 is: Multiple Choice Debit Petty Cash $370; credit Cash $370. Debit Petty Cash $50; credit Cash $50. O Debit Miscellaneous Expense $50; credit Cash $50. Debit Petty Cash $50; credit Accounts Payable $50. O Debit Cash $50; credit Petty Cash $50.
Havermill Co. establishes a $320 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $80 for Office Supplies, $144 for merchandise Inventory, and $29 for miscellaneous expenses. The fund has a balance of $25. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the increase in the fund balance on October 1 is: Multiple Choice Debit Petty Cash $370; credit Cash $370. Debit Petty Cash $50; credit Cash $50. O Debit Miscellaneous Expense $50; credit Cash $50. Debit Petty Cash $50; credit Accounts Payable $50. O Debit Cash $50; credit Petty Cash $50.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1PA: On September 1, French company has decided to initiate a petty cash fund in the amount of $800....
Question
![Havermill Co. establishes a $320 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that
date represent $80 for Office Supplies, $144 for merchandise Inventory, and $29 for miscellaneous expenses. The fund has a balance of $25. On
October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the increase in the fund balance on
October 1 is:
Multiple Choice
Debit Petty Cash $370; credit Cash $370.
Debit Petty Cash $50; credit Cash $50.
O
Debit Miscellaneous Expense $50; credit Cash $50.
Debit Petty Cash $50; credit Accounts Payable $50.
O
Debit Cash $50; credit Petty Cash $50.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ab9f140-81a5-4aaa-b139-9123517da390%2Fb81b9834-6e1f-45fc-a474-5ad2bda093e5%2F6behg88_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Havermill Co. establishes a $320 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that
date represent $80 for Office Supplies, $144 for merchandise Inventory, and $29 for miscellaneous expenses. The fund has a balance of $25. On
October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the increase in the fund balance on
October 1 is:
Multiple Choice
Debit Petty Cash $370; credit Cash $370.
Debit Petty Cash $50; credit Cash $50.
O
Debit Miscellaneous Expense $50; credit Cash $50.
Debit Petty Cash $50; credit Accounts Payable $50.
O
Debit Cash $50; credit Petty Cash $50.
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