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 of the petty cash fund

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Answer 1

Question

Chapter 8, Problem 3BPSB

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 of the petty cash fund

To determine

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

To determine

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

To determine

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

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Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $35,000 in inventory. During the quarter, the company purchased, $8,650 of new inventory from a vendor, returned $1,200 of inventory to the vendor, and took advantage of discounts from the vendor of $250. At the end of the quarter, the balance in inventory is $29,000 What is the cost of goods sold? A. $6,000 B. $14,650 C. $14,650 D. $13,200 E. $15,150

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Answer 2

Question

Chapter 8, Problem 3BPSB

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 of the petty cash fund

To determine

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

To determine

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

To determine

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 8, Problem 3BPSB

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 of the petty cash fund

To determine

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

To determine

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

To determine

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 3BPSB

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 of the petty cash fund

To determine

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

To determine

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

To determine

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 3BPSB

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 of the petty cash fund

To determine

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

To determine

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

To determine

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

Answer 6

Chapter 8, Problem 3BPSB

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 of the petty cash fund

Answer 7

Chapter 8, Problem 3BPSB

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 of the petty cash fund

Answer 8

To determine

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

Answer 9

To determine

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

Answer 10

To determine

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

Answer 11

To determine

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

Answer 12

To determine

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

Answer 13

To determine

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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

Concept explainers

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund

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Chapter 8 Solutions

Concept explainers

Requirement-2: To prepare: The Petty Cash payments report for the month of March

Requirement-3(a): To prepare: The journal entry for the replenishment of the petty cash fund

Requirement-3(b): To prepare: The journal entry for the increase in the petty cash fund

Want to see the full answer?

Chapter 8 Solutions

Requirement-2:

To prepare: The Petty Cash payments report for the month of March

Requirement-3(a):

To prepare: The journal entry for the replenishment of the petty cash fund

Requirement-3(b):

To prepare: The journal entry for the increase in the petty cash fund