Omicron Ltd. has a petty cash fund for $2,750 when established. When financial statements are prepared at the end of the month it replenishes the fund. The company finds that the fund is empty in the last week of the month so it decides to increase the fund size by 50%. On February 18th, when it is decided to increase the petty cash fund size, there are $1,285 in expense receipts and vouchers that justify the depletion of the fund during the month. Omicron Ltd. decides to replenish and increase the fund size in the same journal entry.   Required 1: How much is the cheque written to complete this transaction? $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Omicron Ltd. has a petty cash fund for $2,750 when established. When financial statements are prepared at the end of the month it replenishes the fund. The company finds that the fund is empty in the last week of the month so it decides to increase the fund size by 50%. On February 18th, when it is decided to increase the petty cash fund size, there are $1,285 in expense receipts and vouchers that justify the depletion of the fund during the month. Omicron Ltd. decides to replenish and increase the fund size in the same journal entry.

 

Required 1: How much is the cheque written to complete this transaction? $

 

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