Explanation Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches Prepare journal entries to record the petty cash transactions. Date Account Titles and explanation Debit ($) Credit ($) January 2 Petty cash 600 Cash 600 (To establish the petty cash fund) Table (1) Petty cash is an asset and there is an increase in the value of an asset. Hence, debit the cash by $600. Cash is an asset and there is a decrease in the value of an asset. Hence, credit the cash by $600. Date Account Titles and explanation Debit ($) Credit ($) January 31 Postage expense 250.40 Office supplies expense 165.90 Miscellaneous expense 119.05 Cash short and over (2) 7.30 Cash 542.65 (To replenish petty cash fund ) Table (2) Postage expense is component of stockholder’s equity and there is an increase in the value of expense...

Bundle: Intermediate Accounting: Reporting and Analysis, 2017 Update, Loose-Leaf Version, 2nd + CengageNOWv2, 2 terms Printed Access Card

2nd Edition

ISBN: 9781337358552

Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher: Cengage Learning

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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 6, Problem 20E

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Prepare journal entries to record the petty cash transactions.

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Chapter 6, Problem 19E

Chapter 6, Problem 21E

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Bundle: Intermediate Accounting: Reporting and Analysis, 2017 Update, Loose-Leaf Version, 2nd + CengageNOWv2, 2 terms Printed Access Card

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Prepare journal entries to record the petty cash transactions.

Solution Summary: The author explains that petty cash fund is a fund established to pay insignificant amounts like postage, office supplies, and lunches.

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Prepare journal entries to record the petty cash transactions.

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