Topic: Cash and Cash Equivalents / Intermediate Accounting 1 The accountant of Meema Inc. established a petty cash fund of P1,400.During September, the fund was depleted by the following disbursements:Shipping expenseTravel expense740240Postage expense230Miscellaneous supplies170In addition to receipts for the above items, the petty cash box contained P8in coins and an IOU of P8 from the secretary handling the fund. The companyuses a cash over and short expense account, as needed. The companydecided to decrease petty cash fund to P1,000Required:a. Provide entry to establish the petty cash fundb. Provide entry to record the disbursements as they occur.c. Provide the entry to replenish the petty cash fundd. Provide the entry to record the decrease in the petty cashfund.

The petty cash fund is established to maintain the cash balance for the smaller cash transactions…

Answered: uring September, the fund was depleted…

uring September, the fund was depleted by the following disbursements: Shipping expense 740 240 Travel expense 230 Postage expense 170 Miscellaneous supplies

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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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Topic: Cash and Cash Equivalents / Intermediate Accounting 1

The accountant of Meema Inc. established a petty cash fund of P1,400.
During September, the fund was depleted by the following disbursements:
Shipping expense
Travel expense
740
240
Postage expense
230
Miscellaneous supplies
170
In addition to receipts for the above items, the petty cash box contained P8
in coins and an IOU of P8 from the secretary handling the fund. The company
uses a cash over and short expense account, as needed. The company
decided to decrease petty cash fund to P1,000
Required:
a. Provide entry to establish the petty cash fund
b. Provide entry to record the disbursements as they occur.
c. Provide the entry to replenish the petty cash fund
d. Provide the entry to record the decrease in the petty cash
fund.

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