Financial Accounting, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134114811
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Question
Chapter 7.A, Problem 7AP
1.
To determine
To record: The
2.
To determine
To record: The journal entry to replenish the petty cash fund and to state the apprehensions regarding cash short and over account.
3.
To determine
To record: The journal entry to increase the fund balance to $350 including explanation and explain briefly what should be done by the custodian when the balance is increased.
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Students have asked these similar questions
On April 3, Snappy Sales decides to establish a $135 petty cash fund to relieve the burden on Accounting.
a. Journalize the establishment of the fund.
Apr. 3
b. On April 11, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of $25.25, meals and entertainment of $68.00, and $9.75
the ending cash balance. Journalize the replenishment of the fund. Round your answers to two decimal places.
If an amount box does not require an entry, leave it blank.
Apr. 11
c. On April 12, Snappy Sales decides to increase petty cash to $175. Journalize this transaction.
Apr. 12
Using the following information, prepare the journal entries to:
a.
Establish a $200 petty cash fund on January 2.
b.
Reimburse the petty cash fund at the end of the month.
Date
Voucher No.
Purpose
Amount
Jan. 2
1
Office supplies
$15
6
2
Withdrawal by owner
20
7
3
Lunch with client
35
7
4
Postage
12
8
5
Donation to United Way
25
12
6
Telephone repair
32
23
7
Office supplies
15
28
8
Lunch with client
40
If an amount box does not require an entry, leave it blank.
←
Lorena's Dance Studio created a $270 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows:
(Click the icon to view the petty cash tickets.)
Data table
Petty Cash
Ticket No.
Ticket No. 1
Ticket No. 2
Ticket No. 3
Ticket No. 4
Ticket No. 5
Account Debited
Delivery of programs to customers Delivery Expense
Mail package
Postage Expense
Printing Expense
Miscellaneous Expense
Office Supplies
Item
Newsletter
Key to closet
Copier paper
Amount
$
30
15
35
50
75
Requirements
1.
Make the general journal entry to create the petty cash fund. Include an
explanation.
2. Make the general journal entry to record the petty cash fund replenishment.
Cash in the fund totals $50. Include an explanation.
3. Assume that Lorena's Dance Studio decides to decrease the petty cash fund
to $130. Make the general journal entry to record this decrease.
Chapter 7 Solutions
Financial Accounting, Student Value Edition (4th Edition)
Ch. 7.A - Prob. 1SECh. 7.A - Prob. 2SECh. 7.A - Prob. 3AECh. 7.A - Prob. 4AECh. 7.A - Prob. 5BECh. 7.A - Prob. 6BECh. 7.A - Prob. 7APCh. 7.A - Prob. 8APCh. 7 - Which duties should be segregated in the...Ch. 7 - Prob. 2DQ
Ch. 7 - Prob. 3DQCh. 7 - Why does the allowance method of accounting for...Ch. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - How would the net realizable value of Accounts...Ch. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1SCCh. 7 - Prob. 2SCCh. 7 - Prob. 3SCCh. 7 - Prob. 4SCCh. 7 - Prob. 5SCCh. 7 - Prob. 6SCCh. 7 - Prob. 7SCCh. 7 - Prob. 8SCCh. 7 - Prob. 9SCCh. 7 - Prob. 10SCCh. 7 - Prob. 11SCCh. 7 - Prob. 12SCCh. 7 - Prob. 1SECh. 7 - Prob. 2SECh. 7 - Prob. 3SECh. 7 - Prob. 4SECh. 7 - Prob. 5SECh. 7 - Prob. 6SECh. 7 - Prob. 7SECh. 7 - Prob. 8SECh. 7 - Prob. 9SECh. 7 - Prob. 10SECh. 7 - Prob. 11SECh. 7 - Prob. 12SECh. 7 - Prob. 13SECh. 7 - Prob. 14SECh. 7 - Prob. 15SECh. 7 - Quick ratio (Learning Objective 7) 510 min....Ch. 7 - Prob. 17SECh. 7 - Prob. 18AECh. 7 - Prob. 19AECh. 7 - Prob. 20AECh. 7 - Prob. 21AECh. 7 - Prob. 22AECh. 7 - Prob. 23AECh. 7 - Prob. 24AECh. 7 - Prob. 25AECh. 7 - Prob. 26AECh. 7 - Prob. 27AECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 29AECh. 7 - Prob. 30BECh. 7 - Prob. 31BECh. 7 - Prob. 32BECh. 7 - Prob. 33BECh. 7 - Prob. 34BECh. 7 - Prob. 35BECh. 7 - Prob. 36BECh. 7 - Prob. 37BECh. 7 - Prob. 38BECh. 7 - Prob. 39BECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 41BECh. 7 - Prob. 42APCh. 7 - Prob. 43APCh. 7 - Prob. 44APCh. 7 - Prob. 45APCh. 7 - Prob. 46APCh. 7 - Prob. 47APCh. 7 - Prob. 48APCh. 7 - Prob. 49BPCh. 7 - Prob. 50BPCh. 7 - Prob. 51BPCh. 7 - Prob. 52BPCh. 7 - Prob. 53BPCh. 7 - Prob. 54BPCh. 7 - Prob. 55BPCh. 7 - Continuing Exercise In this exercise, we continue...Ch. 7 - Prob. 1CPCh. 7 - Prob. 1CFSAPCh. 7 - Prob. 1EIACh. 7 - Prob. 2EIACh. 7 - Prob. 1FACh. 7 - Prob. 1IACh. 7 - Prob. 1SBACh. 7 - Prob. 1WC
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