The following are data of Taehyung Inc.: The petty cash fund was established on May 2, 2019, in the amount of P10,000. The expenditures from the fund by the custodian as of May 31, 2019, were evidenced by approved petty cash vouchers for the following: various office supplies- P3,920; IOUs from employees- P1,200; shipping charges- P2,298; miscellaneous expenses- P1,526. On May 31, 2019, the petty cash fund was replenished and increased to P12,000; currency and coins in the fund at that time totaled P756. The journal entry to record the replenishment of and increase in petty cash fund includes a credit to

The following are data of Taehyung Inc.: The petty cash fund was established on May 2, 2019, in the amount of P10,000. The expenditures from the fund by the custodian as of May 31, 2019, were evidenced by approved petty cash vouchers for the following: various office supplies- P3,920; IOUs from employees- P1,200; shipping charges- P2,298; miscellaneous expenses- P1,526. On May 31, 2019, the petty cash fund was replenished and increased to P12,000; currency and coins in the fund at that time totaled P756. The journal entry to record the replenishment of and increase in petty cash fund includes a credit to

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Description: The following are data of Taehyung Inc.: The petty cash fund was established on May 2, 2019, in the amount of P10,000. The expenditures from the fund by the custodian as of May 31, 2019, were evidenced by approved petty cash vouchers for the followi

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
On december 1, 2023 , Dolce Corporation established a petty cash fund of 5,000. On December 31, 2023, the petty cash fud was examined and found to have receipts and documents for miscellaneous expenses amounting to 2,740 and a petty cash voucher for 1,250 signed by an employee as a IOU. In addition, there was cash amounting to 860 Question:Assuming that on replenishment was made at year end, what entry would be required to record adjustment of the petty cash fud o December 31, 2023? A. Miscellaneous Expeses 2,740 Petty Cash Fund 860 Receivable from Employees 1,250 Cash In Bank 5,000 B. Miscellaneous Expeses 2,740 Receivable from Employees 1,250 Cash Short and Over 150 Petty Cash Fund 4,140 C. Miscellaneous Expeses 2,740 Receivable from Employees 1,250 Cash Short and Over 150…
The following information were taken from Bach Co.: Bach established a petty cash fund on May 2, 2021, amounting to P5,000. Expenditures from the fund by the custodian as of May 31, 2021, were evidenced by approved petty cash vouchers for the following: Page 6 of 11 Office supplies P1,960 Meals and snacks 600 Shipping charges 1,149 Miscellaneous 763 On May 31, 2021, the petty cash fund was replenished. Currency and coins in the fund at that time totaled P378. The bank statement from Sulfur Bank is shown below: Disbursements Receipts Balance Balance, May 1, 2021 Deposits Note payment direct from customer (interest of P600) Checks cleared during May Bank service charges Balance, May 31, 2021 P175,380 P560,000 18,600 P623,000 540 P130,440 The cash balance as found in Bach's records shows the following information: P177,000 Balance, May 1, 2021 May deposits Checks written in May 615,080 636,700 Deposits in transit are determined to be P60,000, and checks outstanding on May 31 totaled…
the petty cash fund of the wee ones agency was established on may1, 2023, at $75. at the end of the month the fund contained $13 and had the following receipts. Film rentals, $19, refreshments for meetings, $23(both expenditures to be classified as an entertainment expense, postage, $7 and printing, $13. 1. prepare the journal entry to record the establishment of the fund. 2. prepare a summary of the petty cash payments similar to
On December 1, 2021, Hazel Company established a petty cash fund of P50,000, On December 31, 2021, the petty cash fund comprised the following information: Coins and currencies 6,000 Petty cash vouchers for miscellaneous expense 46,000 The petty cash fund was replenished on December 31, 2021. What entry should Hazel make on December 31, 2021 to record the replenishment of petty cash fund?
VKS Company established a petty cash fund of P10,000 on July 1, 2021. At the end of the month, the count of cash on hand indicated that P3,757.10 remained in the fund. A review of the petty cash vouchers disclosed the following expenses had been incurred during the month: Office supplies – 741.90; Postage – 880; Representation – 900; Transportation – 1,421.40; Miscellaneous – 837.60 Other items found in the petty cash drawer were as follows:A sympathy envelope containing P3,500, representing employee’s contributions for the death of the father of the company’s janitor. An employee’s check for P900 dated August 15, 2021. The given information indicates that there is a _________________ A. cash shortage of P562.00 B. cash overage of P538.00 C. cash overage of P562.00 D. cash shortage of P538.00
The statement of financial position of the Company dated October 31,2021, shows cash of P2,177,870. The following items were found to comprise this amount: Cash in Metrobank, (outstanding checks as of year-end totaled P50,200)-P290,320; Petty cash fund (including expense receipts of P2,500)-P15,000; Undeposited sales receipts -P47,200; Sinking fund cash – P500,000; Cash surrender value of life insurance policy –P800,000; Cash in foreign bank (in equivalent pesos) - P250,000; Cash travel advances in the hands of sales personnel-P25,000; Customer’s check on hand: Traveler’s check – P14,450; Customer’s check dated November 3, 2021- P7,400; Manager’s check- P8,500; 120-day BSP Treasury bills- P120,000; 90 day, BSP treasury bills – P100,000. What is the company’s correct amount of cash and cash equivalents on October 31, 2021?
Raffy Tulfo In Action (RTIA) appointed Shelwyn as its petty cash custodian. As at December 31, 2020, the petty cash amounted to P50,000 and is consisted of the following:Check drawn payable to Shelwyn to replenish the fund P20,000Customer check received for payment of an account 10,000Grab and uber receipts incurred by RTIA staffs 5,000Note pledged by Brill, an employee of RTIA 5,000Currency and coins 5,000Envelope containing contributions for RTIA staff's dinner 5,000As at December 31, 2020, what is the amount to be reported as petty cash in RTIA's statement of financial position?
Define current assets. What basis is used for arranging individual items within the current assets section? ABSB established a $100 petty cash fund on January 1, 2021. On January 31, the fund had a $24 cash balance and petty cash receipts for postage of $28, Office supplies $20, and delivery expense of $30. Prepare Journal Entries to establish the fund on January 1, and to replenish the fund on January 31, 2021
The statement of financial position of VKS Company dated October 31,2021, shows cash of P2,177,870. The following items were found to comprise this amount: Cash in Bank1, (outstanding checks as of year-end totaled P50,200)-P290,320; Petty cash fund (including expense receipts of P2,500)-P15,000; Undeposited sales receipts -P47,200; Sinking fund cash – P500,000; Cash surrender value of life insurance policy –P800,000; Cash in foreign bank (in equivalent pesos) - P250,000; Cash travel advances in the hands of sales personnel-P25,000; Customer’s check on hand: Traveler’s check – P14,450; Customer’s check dated November 3, 2021- P7,400; Manager’s check- P8,500; 120-day BSP Treasury bills- P120,000; 90 day, BSP treasury bills – P100,000. What is VKS's correct amount of cash and cash equivalents on October 31, 2021?
Presented below are transactions of MM Company related to petty cash for the last 2 months of year 2020. Nov. 2 Established an imprest petty cash fund of P10,000. 30 Examination of the cash fund disclosed the following: Currency and coin Memoranda showing expenditures for: 3,000 Postage Supplies 2,000 5,000 Dec. 1 A check was drawn to replenish the fund and to increase its amount to P20,000. Dec. 31 Incurred the following expenditures: Postage 3,000 4,000 Supplies Donation 2,000 The fund was not replenished. How much should be petty cash fund balance to be included in the statement of financial positions as of December 31, 202O?
Jungkook Company reported a cash balance of P3,310,476 on December 31, 2020. The amount consistsof the following:• Petty cash fund (including expense receipts for P 2,340)- P10,000• Checking account in BDO (outstanding checks at Dec. 31, P26,780)- P286,230• Cash on hand, including a customer’s check of P4,750 dated January 15, 2021- P38,246• Cash in bank, General account, net of P12,000 bank overdraft in another bank’s account- P284,000• Cash in bank, payroll account, net of P 8,500 check dated December 26, but undelivered as ofDecember 31, 2020- P225,000• Sinking fund cash- P1,567,000• Short-term treasury bills- P120,000• Cash surrender value of life insurance- P780,000At what amount should cash and cash equivalents of Jungkook reported on December 31, 2020?