Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system: Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund. Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund. Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund. Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account. Requirement-1: To prepare: The Journal entries for the establishment and replenishment or rising of the fund

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Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 8, Problem 1GLP

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment or rising of the fund

To determine

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

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Timothy Enterprises reported net sales of $5.75 million and beginning total assets of $1.80 million and ending total assets of $2.20 million. The average total asset amount is: a. $3.95 million b. $2.00 million c. $0.40 million d. $4.00 million e. $1.00 million

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Crescent Motors had total assets of $720,000 and total liabilities of $430,000 at the beginning of the year. During the year, total assets decreased by $95,000, and stockholders' equity increased by $80,000. What is the amount of total liabilities at the end of the year?

Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 8, Problem 1GLP

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment or rising of the fund

To determine

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

Expert Solution & Answer

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 8, Problem 1GLP

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment or rising of the fund

To determine

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

Expert Solution & Answer

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 8, Problem 1GLP

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment or rising of the fund

To determine

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 1GLP

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment or rising of the fund

To determine

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

Answer 6

Chapter 8, Problem 1GLP

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment or rising of the fund

Answer 7

Chapter 8, Problem 1GLP

To determine

Concept Introduction:

Petty Cash Accounting: Petty Cash is a small amount of cash kept for disbursing small expenses like postage, miscellaneous expenses etc. in this system an amount of cash is given to a custodian as advance to disburse for expenses. The custodian disburses the expenses and asks for replenishment or raising the fund time to time. The following transactions are incurred in case of petty cash system:

Establishment of the petty cash fund: Petty cash is created by drawing amount of cash from business as a separate account. To journalize this transaction, the Petty cash account is debited and Cash account is credited with the initial amount of petty cash fund.

Disbursements from the petty cash fund: The custodian disburses the find for payment of small expenses. Each disbursement is not recorded separately; rather a combined journal entry is passed at the time of replenishment of the fund.

Replenishment for the petty cash fund: The fund is replenished with the amount of cash spent to bring the find balance same as the initial fund.

Increase or Decrease of fund amount: Petty Cash fund amount may be increased or decreased as per the requirements. To increase the fund, the Petty cash account is debited and Cash account is credited. To Decrease the fund, Cash account is debited and Petty cash account.

Requirement-1:

To prepare: The Journal entries for the establishment and replenishment or rising of the fund

Answer 8

To determine

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

Answer 9

To determine

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

Requirement-2: To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31

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Chapter 8 Solutions

Requirement-2:

To Explain: The effect on financial statements, if no entry is made for the replenishment of the petty cash fund on May 31