Petty cash system: Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements. Journal Entries: Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order. Accounting rules for journal entries : To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. 1. To prepare: Journal entries in the books of M Company during the month of January.

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Answer 1

Question

Chapter 6, Problem 2PSB

To determine

Petty cash system:

Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements.

Journal Entries:

Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To prepare: Journal entries in the books of M Company during the month of January.

2.

To determine

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

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Answer 2

Question

Chapter 6, Problem 2PSB

To determine

Petty cash system:

Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements.

Journal Entries:

Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To prepare: Journal entries in the books of M Company during the month of January.

2.

To determine

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 2PSB

To determine

Petty cash system:

Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements.

Journal Entries:

Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To prepare: Journal entries in the books of M Company during the month of January.

2.

To determine

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 2PSB

To determine

Petty cash system:

Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements.

Journal Entries:

Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To prepare: Journal entries in the books of M Company during the month of January.

2.

To determine

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 2PSB

To determine

Petty cash system:

Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements.

Journal Entries:

Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To prepare: Journal entries in the books of M Company during the month of January.

2.

To determine

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

Answer 6

Chapter 6, Problem 2PSB

To determine

Petty cash system:

Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements.

Journal Entries:

Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To prepare: Journal entries in the books of M Company during the month of January.

Answer 7

Chapter 6, Problem 2PSB

To determine

Petty cash system:

Petty cash system is a system which is used for making payments for small day to day expenses. It facilitates ease to deal with small cash disbursements.

Journal Entries:

Journal entries are the transactions of quantitative nature that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To prepare: Journal entries in the books of M Company during the month of January.

Answer 8

2.

To determine

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

Answer 9

2.

To determine

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 6 - Prob. 1MCQ Ch. 6 - Prob. 2MCQ Ch. 6 - Prob. 3MCQ Ch. 6 - Prob. 4MCQ Ch. 6 - Prob. 1DQ Ch. 6 - Prob. 2DQ Ch. 6 - Prob. 3DQ Ch. 6 - Prob. 4DQ Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ

Solution Summary: The author explains the accounting rules for journal entries in the books of accounts to record transactions of quantitative nature.

Concept explainers

To explain: Affect on financial statements of not replenished petty cash fund and lack of journal entry on January 31.

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Chapter 6 Solutions