On may 1, 1990, Auca management decided to establish a 4,000,000 petty cash. With 50,000 maximum cash out per transaction. At replenishment date with end week 1 , the physical check found supporting documents for the following expenses paid through petty cash: Travels125,000Repairs325,400Utilities245,000Miscellaneous1,250,800Supplies1,720,000Whereas the counted cash balance is 330,000Required: carry out necessary journal entries relating to petty cash replenishment.

Solution: To establish petty cash fund, petty cash is to be debited and cash is credited To…

Answered: On may 1, 1990, Auca management decided…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 4EB: Record the following transactions: A. Started a petty cash fund in the amount of $1,000. B....

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On may 1, 1990, Auca management decided to establish a 4,000,000 petty cash. With 50,000 maximum cash out per transaction. At replenishment date with end week 1 , the physical check found supporting documents for the following expenses paid through petty cash:

Travels	125,000
Repairs	325,400
Utilities	245,000
Miscellaneous	1,250,800
Supplies	1,720,000

Whereas the counted cash balance is 330,000
Required: carry out necessary journal entries relating to petty cash replenishment.

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