Explanation The necessary entries to adjust balance of cash are passed to reconcile the cash balance. Petty cash amount spent is established hence it is debited, as the asset is increased. However, the cash is spent to establish the petty cash and the asset is decreased; hence, the cash account is credited. The Entertainment expense and purchase of stamps were made from the petty cash fund. The Entertainment expense and stamp charges are expenses which reduce the stockholder's equity ; hence they are debited and as the cash is paid, the asset is decreased; hence, the petty cash account is credited. The utilities and plumbing repair services were made using the credit card. The utilities and Plumbing repair services are expenses which reduce the stockholder's equity; hence they are debited and as the cash is paid, the asset is decreased; hence, the cash account is credited. Petty cash amount spent is replenished hence it is debited, as the asset is increased...

4th Edition

ISBN: 9781259307959

Author: J. David Spiceland, Wayne M Thomas, Don Herrmann

Publisher: McGraw-Hill Education

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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…

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Chapter 4, Problem 4.13E

To determine

To Record: The establishment of petty cash fund.

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Chapter 4, Problem 4.12E

Chapter 4, Problem 4.14E

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Chapter 4 Solutions

Financial Accounting

Ch. 4 - Prob. 1RQ Ch. 4 - Prob. 2RQ Ch. 4 - Prob. 3RQ Ch. 4 - Prob. 4RQ Ch. 4 - What is meant by the fraud triangle, and what can...Ch. 4 - Prob. 6RQ Ch. 4 - Prob. 7RQ Ch. 4 - Prob. 8RQ Ch. 4 - What is meant by separation of duties?Ch. 4 - Prob. 10RQ

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