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

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 2PSB

1.

To determine

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

1.

Expert Solution

Explanation of Solution

To establish the fund Jan 3:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.3	Petty Cash		150
	Cash			150
	(To establish petty cash fund)
Table (1)

Petty Cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $150.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash account credited by $150.

To replenish petty cash fund on Jan 14 (a to e):

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.14	Office supplies expenses		14.9
	Merchandise inventory		19.60
	Repair expenses-computer		38.57
	Miscellaneous expenses		12.82
	Cash over and short		2.44
	Cash			87.72
	(To replenish petty cash fund)
Table (2)

All expenses have debit balance. Expenses increase and get debited. So, given in the question office supplies expenses, merchandise inventory, repair expenses-computer, and miscellaneous expenses $14.9, $19.60, $38.57, and $12.82 respectively are debited.
$62.28 is in the cash box out of total petty cash fund $150. This implies $87.72 ($150-$62.28) cash is available to spend. Since actual expenses are $85.28 and spent $87.72, difference of this $2.44 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash is credited with $87.72.

To increase petty cash on Jan15.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 15	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (3)

Petty Cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

To replenish petty cash on Jan 31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.31	Advertising expenses		50
	Postage expenses		48.19
	Delivery expenses		78
	Cash over and short		6.46
	Cash			182.65
	(To replenish petty cash)
Table (4)

All expenses have debit balance. Expenses increase and get debited. So, given in the question advertising expenses, postage expenses and delivery expenses $50, $48.19 and $78 respectively are debited.
$17.35 should be in the petty cash box out of total petty cash fund $200 which is increased fund. This implies $182.65 ($200-$17.35) cash is available to spend. Since actual expenses are $176.19 and spent $182.65, difference of this $6.46 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $182.65.

To increase petty cash on Jan31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 31	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (5)

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

2.

To determine

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

2.

Expert Solution

Explanation of Solution

Affect on financial statements:

In such case where petty cash does not replenished on January 31 also no entry made on the same date, M Company will have a petty cash limit of $200 however actual cash in the petty cash box is $17.35.
There would be difference between actual cash available and petty cash maintained limit.

( $50+$48.19+$78+$6.46 )

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

work Question 6 of 11 Pronghorn Company, organized in 2025, has the following transactions related to intangible assets. 1/2/27 Purchased patent (8-year life) $592,000 4/1/27 *Goodwill (indefinite life) 375,000 7/1/27 Acquired 10-year franchise; expiration date 7/1/2037 520,000 9/1/27 Incurred research and development costs 178,000 4.74/14 E *The goodwill resulted from the purchase of a small company for cash in the amount of $750,000. At the time of acquisition, the fair value of the assets totaled $1,850,000, and the fair value of the liabilities totaled $1,475,000. (a1) Your answer is partially correct. Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2027, recording any necessary amortization and reflecting all balances accurately as of that date. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.…

Hii, Tutor Give answer

CH 20 Master Budgets Extra Credit 6 Required information Part 2 of 2 3.35 points Saved Problem 20-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 56,500 August $ 72,500 September $ 55,500 Budgeted cash payments for eBook Direct materials Direct labor Overhead 15,660 3,540 19,700 12,940 2,860 16,300 13,260 2,940 16,700 Ask Print References Mc Graw Hill Help Save & Exit Submit Sales to customers are 20% cash and 80% on credit. Sales in June were $54,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $45,000 in cash and $4,500 in loans payable. A minimum cash balance of $45,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $45,000. Interest is 1% per month based on the…

Answer 2

Question

Chapter 6, Problem 2PSB

1.

To determine

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

1.

Expert Solution

Explanation of Solution

To establish the fund Jan 3:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.3	Petty Cash		150
	Cash			150
	(To establish petty cash fund)
Table (1)

Petty Cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $150.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash account credited by $150.

To replenish petty cash fund on Jan 14 (a to e):

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.14	Office supplies expenses		14.9
	Merchandise inventory		19.60
	Repair expenses-computer		38.57
	Miscellaneous expenses		12.82
	Cash over and short		2.44
	Cash			87.72
	(To replenish petty cash fund)
Table (2)

All expenses have debit balance. Expenses increase and get debited. So, given in the question office supplies expenses, merchandise inventory, repair expenses-computer, and miscellaneous expenses $14.9, $19.60, $38.57, and $12.82 respectively are debited.
$62.28 is in the cash box out of total petty cash fund $150. This implies $87.72 ($150-$62.28) cash is available to spend. Since actual expenses are $85.28 and spent $87.72, difference of this $2.44 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash is credited with $87.72.

To increase petty cash on Jan15.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 15	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (3)

Petty Cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

To replenish petty cash on Jan 31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.31	Advertising expenses		50
	Postage expenses		48.19
	Delivery expenses		78
	Cash over and short		6.46
	Cash			182.65
	(To replenish petty cash)
Table (4)

All expenses have debit balance. Expenses increase and get debited. So, given in the question advertising expenses, postage expenses and delivery expenses $50, $48.19 and $78 respectively are debited.
$17.35 should be in the petty cash box out of total petty cash fund $200 which is increased fund. This implies $182.65 ($200-$17.35) cash is available to spend. Since actual expenses are $176.19 and spent $182.65, difference of this $6.46 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $182.65.

To increase petty cash on Jan31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 31	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (5)

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

2.

To determine

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

2.

Expert Solution

Explanation of Solution

Affect on financial statements:

In such case where petty cash does not replenished on January 31 also no entry made on the same date, M Company will have a petty cash limit of $200 however actual cash in the petty cash box is $17.35.
There would be difference between actual cash available and petty cash maintained limit.

( $50+$48.19+$78+$6.46 )

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 2PSB

1.

To determine

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

1.

Expert Solution

Explanation of Solution

To establish the fund Jan 3:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.3	Petty Cash		150
	Cash			150
	(To establish petty cash fund)
Table (1)

Petty Cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $150.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash account credited by $150.

To replenish petty cash fund on Jan 14 (a to e):

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.14	Office supplies expenses		14.9
	Merchandise inventory		19.60
	Repair expenses-computer		38.57
	Miscellaneous expenses		12.82
	Cash over and short		2.44
	Cash			87.72
	(To replenish petty cash fund)
Table (2)

All expenses have debit balance. Expenses increase and get debited. So, given in the question office supplies expenses, merchandise inventory, repair expenses-computer, and miscellaneous expenses $14.9, $19.60, $38.57, and $12.82 respectively are debited.
$62.28 is in the cash box out of total petty cash fund $150. This implies $87.72 ($150-$62.28) cash is available to spend. Since actual expenses are $85.28 and spent $87.72, difference of this $2.44 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash is credited with $87.72.

To increase petty cash on Jan15.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 15	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (3)

Petty Cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

To replenish petty cash on Jan 31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.31	Advertising expenses		50
	Postage expenses		48.19
	Delivery expenses		78
	Cash over and short		6.46
	Cash			182.65
	(To replenish petty cash)
Table (4)

All expenses have debit balance. Expenses increase and get debited. So, given in the question advertising expenses, postage expenses and delivery expenses $50, $48.19 and $78 respectively are debited.
$17.35 should be in the petty cash box out of total petty cash fund $200 which is increased fund. This implies $182.65 ($200-$17.35) cash is available to spend. Since actual expenses are $176.19 and spent $182.65, difference of this $6.46 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $182.65.

To increase petty cash on Jan31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 31	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (5)

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

2.

To determine

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

2.

Expert Solution

Explanation of Solution

Affect on financial statements:

In such case where petty cash does not replenished on January 31 also no entry made on the same date, M Company will have a petty cash limit of $200 however actual cash in the petty cash box is $17.35.
There would be difference between actual cash available and petty cash maintained limit.

( $50+$48.19+$78+$6.46 )

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 2PSB

1.

To determine

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

1.

Expert Solution

Explanation of Solution

To establish the fund Jan 3:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.3	Petty Cash		150
	Cash			150
	(To establish petty cash fund)
Table (1)

Petty Cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $150.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash account credited by $150.

To replenish petty cash fund on Jan 14 (a to e):

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.14	Office supplies expenses		14.9
	Merchandise inventory		19.60
	Repair expenses-computer		38.57
	Miscellaneous expenses		12.82
	Cash over and short		2.44
	Cash			87.72
	(To replenish petty cash fund)
Table (2)

All expenses have debit balance. Expenses increase and get debited. So, given in the question office supplies expenses, merchandise inventory, repair expenses-computer, and miscellaneous expenses $14.9, $19.60, $38.57, and $12.82 respectively are debited.
$62.28 is in the cash box out of total petty cash fund $150. This implies $87.72 ($150-$62.28) cash is available to spend. Since actual expenses are $85.28 and spent $87.72, difference of this $2.44 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash is credited with $87.72.

To increase petty cash on Jan15.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 15	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (3)

Petty Cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

To replenish petty cash on Jan 31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.31	Advertising expenses		50
	Postage expenses		48.19
	Delivery expenses		78
	Cash over and short		6.46
	Cash			182.65
	(To replenish petty cash)
Table (4)

All expenses have debit balance. Expenses increase and get debited. So, given in the question advertising expenses, postage expenses and delivery expenses $50, $48.19 and $78 respectively are debited.
$17.35 should be in the petty cash box out of total petty cash fund $200 which is increased fund. This implies $182.65 ($200-$17.35) cash is available to spend. Since actual expenses are $176.19 and spent $182.65, difference of this $6.46 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $182.65.

To increase petty cash on Jan31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 31	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (5)

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

2.

To determine

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

2.

Expert Solution

Explanation of Solution

Affect on financial statements:

In such case where petty cash does not replenished on January 31 also no entry made on the same date, M Company will have a petty cash limit of $200 however actual cash in the petty cash box is $17.35.
There would be difference between actual cash available and petty cash maintained limit.

( $50+$48.19+$78+$6.46 )

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 2PSB

1.

To determine

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

1.

Expert Solution

Explanation of Solution

To establish the fund Jan 3:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.3	Petty Cash		150
	Cash			150
	(To establish petty cash fund)
Table (1)

Petty Cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $150.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash account credited by $150.

To replenish petty cash fund on Jan 14 (a to e):

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.14	Office supplies expenses		14.9
	Merchandise inventory		19.60
	Repair expenses-computer		38.57
	Miscellaneous expenses		12.82
	Cash over and short		2.44
	Cash			87.72
	(To replenish petty cash fund)
Table (2)

All expenses have debit balance. Expenses increase and get debited. So, given in the question office supplies expenses, merchandise inventory, repair expenses-computer, and miscellaneous expenses $14.9, $19.60, $38.57, and $12.82 respectively are debited.
$62.28 is in the cash box out of total petty cash fund $150. This implies $87.72 ($150-$62.28) cash is available to spend. Since actual expenses are $85.28 and spent $87.72, difference of this $2.44 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash is credited with $87.72.

To increase petty cash on Jan15.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 15	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (3)

Petty Cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

To replenish petty cash on Jan 31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.31	Advertising expenses		50
	Postage expenses		48.19
	Delivery expenses		78
	Cash over and short		6.46
	Cash			182.65
	(To replenish petty cash)
Table (4)

All expenses have debit balance. Expenses increase and get debited. So, given in the question advertising expenses, postage expenses and delivery expenses $50, $48.19 and $78 respectively are debited.
$17.35 should be in the petty cash box out of total petty cash fund $200 which is increased fund. This implies $182.65 ($200-$17.35) cash is available to spend. Since actual expenses are $176.19 and spent $182.65, difference of this $6.46 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $182.65.

To increase petty cash on Jan31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 31	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (5)

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

2.

To determine

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

2.

Expert Solution

Explanation of Solution

Affect on financial statements:

In such case where petty cash does not replenished on January 31 also no entry made on the same date, M Company will have a petty cash limit of $200 however actual cash in the petty cash box is $17.35.
There would be difference between actual cash available and petty cash maintained limit.

( $50+$48.19+$78+$6.46 )

Answer 6

Chapter 6, Problem 2PSB

1.

To determine

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

1.

Expert Solution

Explanation of Solution

To establish the fund Jan 3:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.3	Petty Cash		150
	Cash			150
	(To establish petty cash fund)
Table (1)

Petty Cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $150.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash account credited by $150.

To replenish petty cash fund on Jan 14 (a to e):

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.14	Office supplies expenses		14.9
	Merchandise inventory		19.60
	Repair expenses-computer		38.57
	Miscellaneous expenses		12.82
	Cash over and short		2.44
	Cash			87.72
	(To replenish petty cash fund)
Table (2)

All expenses have debit balance. Expenses increase and get debited. So, given in the question office supplies expenses, merchandise inventory, repair expenses-computer, and miscellaneous expenses $14.9, $19.60, $38.57, and $12.82 respectively are debited.
$62.28 is in the cash box out of total petty cash fund $150. This implies $87.72 ($150-$62.28) cash is available to spend. Since actual expenses are $85.28 and spent $87.72, difference of this $2.44 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash is credited with $87.72.

To increase petty cash on Jan15.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 15	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (3)

Petty Cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

To replenish petty cash on Jan 31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.31	Advertising expenses		50
	Postage expenses		48.19
	Delivery expenses		78
	Cash over and short		6.46
	Cash			182.65
	(To replenish petty cash)
Table (4)

All expenses have debit balance. Expenses increase and get debited. So, given in the question advertising expenses, postage expenses and delivery expenses $50, $48.19 and $78 respectively are debited.
$17.35 should be in the petty cash box out of total petty cash fund $200 which is increased fund. This implies $182.65 ($200-$17.35) cash is available to spend. Since actual expenses are $176.19 and spent $182.65, difference of this $6.46 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $182.65.

To increase petty cash on Jan31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 31	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (5)

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

Answer 7

Chapter 6, Problem 2PSB

1.

To determine

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

Answer 8

1.

Expert Solution

Explanation of Solution

To establish the fund Jan 3:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.3	Petty Cash		150
	Cash			150
	(To establish petty cash fund)
Table (1)

Petty Cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $150.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash account credited by $150.

To replenish petty cash fund on Jan 14 (a to e):

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.14	Office supplies expenses		14.9
	Merchandise inventory		19.60
	Repair expenses-computer		38.57
	Miscellaneous expenses		12.82
	Cash over and short		2.44
	Cash			87.72
	(To replenish petty cash fund)
Table (2)

All expenses have debit balance. Expenses increase and get debited. So, given in the question office supplies expenses, merchandise inventory, repair expenses-computer, and miscellaneous expenses $14.9, $19.60, $38.57, and $12.82 respectively are debited.
$62.28 is in the cash box out of total petty cash fund $150. This implies $87.72 ($150-$62.28) cash is available to spend. Since actual expenses are $85.28 and spent $87.72, difference of this $2.44 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, Cash is credited with $87.72.

To increase petty cash on Jan15.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 15	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (3)

Petty Cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

To replenish petty cash on Jan 31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan.31	Advertising expenses		50
	Postage expenses		48.19
	Delivery expenses		78
	Cash over and short		6.46
	Cash			182.65
	(To replenish petty cash)
Table (4)

All expenses have debit balance. Expenses increase and get debited. So, given in the question advertising expenses, postage expenses and delivery expenses $50, $48.19 and $78 respectively are debited.
$17.35 should be in the petty cash box out of total petty cash fund $200 which is increased fund. This implies $182.65 ($200-$17.35) cash is available to spend. Since actual expenses are $176.19 and spent $182.65, difference of this $6.46 is debited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $182.65.

To increase petty cash on Jan31

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Jan 31	Petty Cash		50
	Cash			50
	(To increase petty cash fund)
Table (5)

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

2.

To determine

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

2.

Expert Solution

Explanation of Solution

Affect on financial statements:

In such case where petty cash does not replenished on January 31 also no entry made on the same date, M Company will have a petty cash limit of $200 however actual cash in the petty cash box is $17.35.
There would be difference between actual cash available and petty cash maintained limit.

( $50+$48.19+$78+$6.46 )

Answer 13

2.

To determine

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

Answer 14

2.

Expert Solution

Explanation of Solution

Affect on financial statements:

In such case where petty cash does not replenished on January 31 also no entry made on the same date, M Company will have a petty cash limit of $200 however actual cash in the petty cash box is $17.35.
There would be difference between actual cash available and petty cash maintained limit.