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

Saved Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,310 in assets to launch the business. On December 31, the company's records show the following items and amounts. $ 10,200 Cash withdrawals by owner Cash Accounts receivable 15,200 Consulting revenue Office supplies 3,550 Rent expense Land 45,990 Office equipment 18,310 Accounts payable 8,740 Salaries expense Telephone expense Miscellaneous expenses Owner investments 84,310 $ 2,340 15,200 3,910 7,350 790 610 Use the above information to prepare a December 31 balance sheet for Ernst Consulting. AC Graw Hill ERNST CONSULTING Balance Sheet December 31 $ 0 G-SYNC $ 0 S 0 B

Audit, Fraud, Or Forensic Accounting Introduce yourself to your peers by sharing something unique about your background. Explain how you expect this course will help you move forward in your current or future career. This course covers forensic accounting, so it's important to establish the differences between an audit, a fraud examination, and a forensic accounting engagement. Think about the fraud conviction of Elizabeth Holmes, as described in the video, "Elizabeth Holmes Found Guilty in Theranos Fraud Trial." Then respond to the following: Imagine you are assigned to the Theranos case. Write the first five questions you would ask if you were an auditor, the first five questions as a fraud examiner, and the first five as a forensic accountant. After your questions, explain why the questions and approaches are different among the three roles. Be sure to respond to at least one of your classmates' posts.

Financial Account subject

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.