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

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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

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

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