The Petty Cash Box has 3 vouchers in it (one for taxi fare in the amount of $25, one for courier charges of one for office treats bought at Tim Hortons for $35). The accountant forgets to make a replenishment entry generating the financial statements for the period. The financial statement implications of this are that: Multiple Choice None of the other options is correct Income is correctly stated but assets are understated by $78 No Implications as the replenishment can occur anytime and is Independent of financial statement generation There is not enough Information provided to assess financial statement Impact Net Income is understated by $78

The Petty Cash Box has 3 vouchers in it (one for taxi fare in the amount of $25, one for courier charges of one for office treats bought at Tim Hortons for $35). The accountant forgets to make a replenishment entry generating the financial statements for the period. The financial statement implications of this are that: Multiple Choice None of the other options is correct Income is correctly stated but assets are understated by $78 No Implications as the replenishment can occur anytime and is Independent of financial statement generation There is not enough Information provided to assess financial statement Impact Net Income is understated by $78

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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Urmila ben
A. Started a petty cash fund in the amount of $550.B. Replenished petty cash fund using the following expenses: Auto Expense $22, Office Expense $45, Postage Expense $24, Miscellaneous Expense $33. Cash on hand is $426.C. The company has decided to reduce the petty cash fund to $350. Record these transactions. If an amount box does not require an entry, leave it blank. A. - Select - - Select - - Select - - Select - B. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - C. - Select - - Select -
You are the accounts assistant in a small company called Autonomy Ltd. The company had the following transactions during June 2021: | Credit sales Receipts from trade receivables Discounts allowed |Sales returns Bad debts written off Contras between sales and purchase ledgers Balance of trade receivables at 1 June 2021 26,595 23,250 650 1,525 1,650 1,000 6,950 Required: a) Construct the sales ledger control account of Autonomy Ltd from the above details. Show clearly the balance carried down at 30 June 2021. b) Explain the purpose of a sales ledger control account.
Cyber Systems’ management has been actively pursuing clients who fail to pay invoices when they fall due. Based on the experience of Cyber Systems in the 2021 financial year which ends on June 30, the longer an account receivable is outstanding, the more likely the client never pays the amount due. The longer the account is due, the more likely the client closes their travel agency and can never pay amounts due to Cyber Systems. Answer the following: (a) Identify the method and approach that is appropriate to account for bad debts in this case. (b) With reference to three relevant accounting principles, assumptions and/or qualitative characteristics, justify why the method and approach you have identified in part (a) is appropriate. Clearly label each part of your answer related to parts a and b above. In particular for part b, structure your answer as follows for each of the three relevant accounting principles, assumptions and/or qualitative characteristics:Identify accounting…
Hanshaben
Suppose that on June 1, Cool Gyrations l, a disc jockey service, create a a petty cash with an impress balance of $400. During June, Ruth Mangan, fund custodian, signs the following petty cash ticket: On June 30, prior to replenishment, the fun contains these tickets plus cash of $246. The accounts affected cash payments are Office Supplies, Entertainment Expense l, and postage Expense .
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