Marjorie Company established a petty cash fund of P50,000 with the followinginformation:Coins and currencyPetty cash vouchers:Gasoline22,0003,000Medical suppliesRepairsIOU from an employee1,0001,5003,500Check drawn payable to the order of Anne Cruz, pettycash custodian, representing her salaryA sheet of paper with the names of several employeestogether with a contribution for a birthday partyand attached to the sheet of paper is a currency ofWhat amount of petty cash fund should be reported?15,0005,000A.42,000B.27,000C.37,000D.22,000

Petty cash is a small amount of fund used for day to day expenses. It is not sensible to make any…

Answered: together with a contribution for a…

together with a contribution for a birthday pa and attached to the sheet of paper is a curren hat amount of petty cash fund should be reported?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Describe about petty cash fund.

Q: Which of the following is most correct? Multiple Choice

A: Tax records refer to the documentation and information related to an individual or entity's tax…

Q: Which of the following serve as the basis for recording appropriate expenses each time the fund is…

A: The custodian is responsible for the petty cash fund. At the ending of accounting period the fund is…

Q: Define the Note Issued for Cash.

A: Promissory Note: A promissory note is a legal and financial tool that contains a written promise…

Q: received a check from the Asif and paid in to the bank journal entry

A: Cash and Bank are two different assets for the business. These assets will be debited in case of…

Q: How do I prepare the journal entry to establish the petty cash fund?

A: Dear student, kindly check the answer in the explanation box below.Explanation:To prepare the…

Q: a $200 petty cash fund has cash for $10 and receipts of $220. The journal entry to replenish the…

A: Despite the fact that it does not reflect the current balance, the petty cash fund account does not…

Q: The same bookkeeper should avoid contact with BOTH Accounts Receivable AND cash receipts. Explain…

A: Separation of duties or task is a technique used in internal control, under this internal control…

Q: The journal entry to record the issuance of the initial check to establish a petty cash fund of $750…

A: Petty cash: Petty cash fund is eastiblished to pay small amount expenses. Office supplies, postage…

Q: A check was issued by L. The name of the payee written on the face of the check is “Cardo Dalisay…

A: a)Order Instrument-An order paper, also known as an order instrument, is a negotiable instrument…

Q: The purpose of a petty cash fund is toa. Provide a convenient form of payment for the company’s…

A: Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage,…

Q: $121 petty cash fund has cash of $19 and receipts of $99. The journal entry to replenish the account…

A: Replenish of petty cash fund means reimbursement of petty cash fund.

Q: A $180 petty cash fund has cash of $20 and receipts of $146. Which of the following would be part of…

A: Cash Need to Replenish to Petty Cash Fund = Amount of Fund to Be - Cash Receipts - Amount of Cash…

Q: The removal of cash from a victim organization before the cash is entered in the organization’s…

A: An accounting system is a tool used to keep track of all types of financial transactions. It is used…

Q: When the amount of cash in the cash register exceeds the amount in the cash register tapes, the…

A: Cash Over and Short account is used to record the discrepancy between firms' reported sales figures…

Q: A $150 petty cash fund has cash of $25 and receipts of $119. The journal entry to replenish the…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Bank Charged OMR 15 as bank charges to Mundher for replacing his lost credit card. Journalize the…

A: The company's transactions will be tracked, and the first book to record these transactions is the…

Q: Peter uses a savings account with a bank. The contract between Peter and the bank is one of: D.…

A: Peter uses a savings account with a bank. The savings account is a primary account type that lets…

Q: Journalize the entry to replenish the petty cash fund. If an amount box does not require an entry,…

A: Step 1 Journal is the part of the book keeping.

Q: On October 1, 20- a check was written in the amount of $300 to establish a pet Voucher No Account…

A: Petty cash refers to a small amount of cash that is kept on hand by a business or organization to…

Q: Which of the following items should be included in the Cash? O A. O B. Postdated checks and I.O.U.'s…

A: Cash and Cash equivalents are coins ,notes bill, cash at bank and any marketable security that can…

Q: additional loan from bank should it be included in cash at hand/cash on bank

A: The company maintain certain amount of the cash for working capital management and smooth operations…

Q: A petty cash fund, established with a $300 balance, had petty cash receipts (tickets/vouchers)…

A: Petty cash is used for a variety of little costs; receipts are gathered and transactions are…

Q: Summarize the procedures to follow when accepting credit cards, bill-to-accounts, cash, checks, and…

A: There are different methods through which the customers make the payment to the company like for the…

Q: If a petty cash fund is established in the amount of $348 and contains $200 in cash and $134 in…

A: JOURNAL ENTRY FOR REPLENISHMENT : PARTICULARS DEBIT CREDIT SUNDRY EXPENSE $134 CASH…

Q: Write a note on cash discounts.

Q: How can money be deposited into a Spruce account? Tax refund. Direct deposit. Linked bank…

A: Several options have been given to fund the Spruce Account. We have to find the correct answer.

Q: To establish a petty cash fund, which account is debited

A: The petty cash fund is the fund maintained by the company in order to pay for the small expenses of…

Q: How do you write up a cash book

A: Cash book is ledger maintained to keep the record of cash transactions and cash balance in the…

Q: 1. Prepare journal entries where required. TIP: Remember that petty cash journal entries are…

A: Petty cash fund is that fund which is maintained for small petty expenses in the business. Imprest…

Q: Describe an entry needed to establish a $50 petty cash fund and an entry to reimburse the fund

A: Petty cash is the amount that is to be kept aside for the reimbursement of routine and minor…

Q: at the time of replenishment, why are the totals of individual expenses debited? explain the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: On April 2, Granger Sales decides to establish a $280 petty cash fund to relieve the burden on…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step…

Q: What is the purpose of setting up a petty cash fund? Select one: O O O a. to allow cash for personal…

A: Answer:- Petty cash fund:- A petty cash fund is a modest cash reserve used to cover miscellaneous…

Q: For number 13 how do i post that in a cash receipts journal?

A: The cash receipt journal is prepared to record all cash receipts. It records cash receipt…

Q: 1.Recording the borrowing of money for which a note is signed involves. Pass the journal entry?

A: Any transaction, whether it occurs offline or online, must be completely and accurately documented…

Q: A $250 petty cash fund has cash of $15 and receipts of $230. The journal entry to replenish the…

A: Particulars Debit (in $) Credit (in $) Expenses Cash short and over [250 - (230+15)]…

Q: Are there any regulations or procedures in place for source documentation and receipts for payments…

A: There are no separate regulations or procedures for source documentation of NPO's. however Not for…

Q: The term deposits in transit refer to: a. Deposits that were made after the bank statement was…

A: In accounting we make bank reconciliation statements. We come across the term “deposit in transit”…

Q: To deposit money in your business's bank account you should use O A cheque book O A bank statement O…

A: The Question has covered the concept of Cheque book, deposit slip, withdrawal slip, bank statement.…

Q: how do we record in the cash payment journal for the payment in cash and with the GST included and…

A: The objective of this question is to understand how to record a cash payment in the cash payment…

Q: When transferring money from the regular checking account to a special purpose payroll account which…

A: A checking account, also known as a transactional or demand account, is a type of bank account that…

Q: a. Journalize the establishment of the fund. Apr. 2 b. On April 10, the petty cash fund has receipts…

A: Person managing the Petty cash fund is called a petty cashier. There are various small expenses…

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

Marjorie Company established a petty cash fund of P50,000 with the following
information:
Coins and currency
Petty cash vouchers:
Gasoline
22,000
3,000
Medical supplies
Repairs
IOU from an employee
1,000
1,500
3,500
Check drawn payable to the order of Anne Cruz, petty
cash custodian, representing her salary
A sheet of paper with the names of several employees
together with a contribution for a birthday party
and attached to the sheet of paper is a currency of
What amount of petty cash fund should be reported?
15,000
5,000
A.42,000
B.27,000
C.37,000
D.22,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A $187 petty cash fund has petty cash on hand of $20 and receipts of $162. The journal entry to replenish the fund would include a O a. debit to Cash for $20. O b. debit to Cash Short and Over for $5. O e credit to Petty Cash for $162. O d. credit to Cash for $187.
Which of the following serve as the basis for recording appropriate expenses each time the fund is replenished? a. Receipts b. Request letter from cash custodian C Cheques issued to cash custodian d. None of the given options
Give typing answer with explanation and conclusion He writes a draft from his personal bank account payable to the power company. This draft is known as a(n) _____. certified check accord and satisfaction promissory note check non-negotiable instrument
23.At the end of the accounting period, the petty cash fund/drawer showed petty cash vouchers for expenses paid from the fund that have not been reimbursed. If no adjusting entry is made at year end, a. cash will be understated and expenses will be overstated. b. cash will be overstated and expenses will be understated c. cash and net income will be understated. d. cash and expenses will be overstated.
Write short note on cash.
Does a cash purchase for dental equipment go under cash and notes payable?
Indicate with Yes or No whether each of items should be included in the cash balance presented on the balance sheet. If yes is selected for the Included in Cash Balance column for NSF checks, Savings account,Compensating balance,post dated checks,IOU,cash on hand,cash in sinking fund, travel advance, bank draft and prepaid debit card. Include the Classification items excluded?
When a company records a bank deposit, it will: O A. credit the Cash account on the company's books. O B. debit the Accounts Receivable account on the company's books. OC. debit the Cash account on the company's books. O D. credit the Accounts Payable account on the company's books.
Petty Cash Fund Question, When it comes to making payments from the petty cash fund, why isn't there an accounting/journal entry for it? Please Explain.
what happen to the account if the owner pay trade payable using own personal bank?
All reconciling items are used to determine the adjusted cash balance per books require the account owner to make adjusting entries to it’s cash account. True or false?
How do I find the amount for the cash account?