Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 8, Problem 14MC
A company has decided to start a petty cash fund for $150. Which of the following is the correct
A. 
B. 
C. No entry is required.
D. 
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Prepare journal entries for each of the following:
a. Issued a check to establish a petty cash fund of $500. If an amount box does not require an entry, leave it blank.
fill in the blank 2d5507fe6fa0fa7_2
fill in the blank 2d5507fe6fa0fa7_3
fill in the blank 2d5507fe6fa0fa7_5
fill in the blank 2d5507fe6fa0fa7_6
b. The amount of cash in the petty cash fund is $85. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $360 and miscellaneous selling expense, $40. Record any missing funds in the cash short and over account. If an amount box does not require an entry, leave it blank
A. Started a petty cash fund in the amount of $450.B. Replenished petty cash fund using the following expenses: Auto Expense $22, Office Expense $41, Postage Expense $24, Miscellaneous Expense $35. Cash on hand is $328.C. The company has decided to reduce the petty cash fund to $250.
Record these transactions. If an amount box does not require an entry, leave it blank.
A. Started a petty cash fund in the amount of $400.
B. Replenished petty cash fund using the following
expenses: Auto Expense $22, Office Expense $39,
Postage Expense $24, Miscellaneous Expense $31. Cash
on hand is $284.
C. The company has decided to reduce the petty cash
fund to $350.
Record these transactions. If an amount box does not
require an entry, leave it blank.
А.
В.
С.
Auto Expense
Cash
Office Expense
Petty Cash
Postage Expense
11 11111 |
Chapter 8 Solutions
Principles of Accounting Volume 1
Ch. 8 - Which of the following would a fraudster perceive...Ch. 8 - Internal control is said to be the backbone of all...Ch. 8 - What is the best way for owners of small...Ch. 8 - Which of the following is not considered to be...Ch. 8 - There are several elements to internal controls....Ch. 8 - A company is trying to set up proper internal...Ch. 8 - There are three employees in the accounting...Ch. 8 - Which one of the following documents is not needed...Ch. 8 - What is the advantage of using technology in the...Ch. 8 - Which of the following assets require the...
Ch. 8 - Which of the following is true about the...Ch. 8 - The external auditor of a company has certain...Ch. 8 - Petty cash is used to ________. A. avoid having to...Ch. 8 - A company has decided to start a petty cash fund...Ch. 8 - Which of the following items are found on a book...Ch. 8 - Which of the following are found on the bank side...Ch. 8 - What would be a reason a company would want to...Ch. 8 - What would be a reason a company would want to...Ch. 8 - At what point does revenue recognition occur? A....Ch. 8 - What is an example of perceived opportunity as one...Ch. 8 - What is an example of rationalization as one of...Ch. 8 - What is an example of incentive as one of the...Ch. 8 - Why is it important to have a very sound and...Ch. 8 - The information technology departments of all...Ch. 8 - What are the functions of the internal control?Ch. 8 - Discuss the importance of a company having proper...Ch. 8 - What is the role of the Sarbanes-Oxley Act and the...Ch. 8 - Why is it important to have a petty cash fund...Ch. 8 - Is it required to have only one petty cashier or...Ch. 8 - Technology can be used to support a strong...Ch. 8 - What is the purpose of the bank reconciliation?Ch. 8 - What should be done if differences are found...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - The bank reconciliation shows the following...Ch. 8 - The bank reconciliation shows the following...Ch. 8 - Using the following information, prepare a bank...Ch. 8 - Prepare the journal entry to reconcile the bank...Ch. 8 - Using the following information, prepare a bank...Ch. 8 - Prepare the journal entry to reconcile the bank...Ch. 8 - Using the following information, prepare a bank...Ch. 8 - Prepare the journal entry to reconcile the bank...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - Record the following transactions: A. Started a...Ch. 8 - The bank reconciliation shows the following...Ch. 8 - The bank reconciliation shows the following...Ch. 8 - Using the following information, prepare a bank...Ch. 8 - Prepare the journal entry to reconcile the bank...Ch. 8 - Using the following information, prepare a bank...Ch. 8 - Prepare the journal entry to reconcile the bank...Ch. 8 - Using the following information, prepare a bank...Ch. 8 - Prepare the journal entry to reconcile the bank...Ch. 8 - On September 1, French company has decided to...Ch. 8 - On May 2 Kellie Company has decided to initiate a...Ch. 8 - Domingo Company started its business on January 1,...Ch. 8 - Prepare a trial balance using the journal entries...Ch. 8 - Inner Resources Company started its business on...Ch. 8 - PA6. 8.4 Prepare a trial balance using the journal...Ch. 8 - Identify where each of the following transactions...Ch. 8 - Which of the following transactions will require a...Ch. 8 - Domingo Company received the following bank...Ch. 8 - Prepare the journal entry required to reconcile...Ch. 8 - Inner Resources Company received the following...Ch. 8 - Prepare the journal entry required to reconcile...Ch. 8 - On June 1 French company has decided to initiate a...Ch. 8 - On July 2 Kellie Company has decided to initiate a...Ch. 8 - Hajun Company started its business on May 1, 2019....Ch. 8 - Prepare a trial balance using the journal entries...Ch. 8 - Lavender Company started its business on April 1,...Ch. 8 - Prepare a trial balance for Lavender Company using...Ch. 8 - Identify where each of the following transactions...Ch. 8 - Which of the following transactions will require a...Ch. 8 - Hajun Company received the following bank...Ch. 8 - Prepare the journal entry required to reconcile...Ch. 8 - Leann Company received the following bank...Ch. 8 - Prepare the journal entry required to reconcile...Ch. 8 - A retail store normally has three people working...Ch. 8 - Visit a favorite eatery. Describe some of the...Ch. 8 - A manufacturing plant was finding a huge increase...Ch. 8 - The vice president of finance asks the accounts...Ch. 8 - Even though technology has improved the internal...Ch. 8 - A bank reconciliation takes time and must balance....Ch. 8 - The bank reconciliation revealed that one deposit...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Why would an employee pass or reveal at work? What are the positive and negative consequences of doing so?
Principles of Management
What is the relationship between management by exception and variance analysis?
Cost Accounting (15th Edition)
Prepare a production cost report and journal entries (Learning Objectives 4 5) Vintage Accessories manufacture...
Managerial Accounting (5th Edition)
What is the relationship between management by exception and variance analysis?
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
E3-27 Identifying the impact of adjusting entries on the financial statements
Learning Objectives 3,5
Aus...
Horngren's Accounting (12th Edition)
E2-13 Identifying increases and decreases in accounts and normal balances
Learning Objective 2
Insert the mis...
Horngren's Accounting (11th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A. Started a petty cash fund in the amount of $450. B. Replenished petty cash fund using the following expenses: Auto Expense $24, Office Expense $45, Postage Expense $66, Miscellaneous Expense $69. Cash on hand is $246. C. Increased petty cash by $100. Record these transactions. If an amount box does not require an entry, leave it blank. A. В. C. B.arrow_forward23.At the end of the accounting period, the petty cash fund/drawer showed petty cash vouchers for expenses paid from the fund that have not been reimbursed. If no adjusting entry is made at year end, a. cash will be understated and expenses will be overstated. b. cash will be overstated and expenses will be understated c. cash and net income will be understated. d. cash and expenses will be overstated.arrow_forwardA. Started a petty cash fund in the amount of $550.B. Replenished petty cash fund using the following expenses: Auto Expense $22, Office Expense $45, Postage Expense $24, Miscellaneous Expense $33. Cash on hand is $426.C. The company has decided to reduce the petty cash fund to $350. Record these transactions. If an amount box does not require an entry, leave it blank. A. - Select - - Select - - Select - - Select - B. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - C. - Select - - Select -arrow_forward
- If a petty cash fund is established in the amount of $250, and contains $151 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts Select one: a. Petty Cash, $99. b. Cash, $99. c. Cash, $95; Cash Over and Short, $4. d. Petty Cash, $95. Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit? Select one: a. $4.40 b. $.48 c. $.44 d. $4.80 A company purchased land for $90,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at Select one: a. $70,000. b.…arrow_forwardA company has a petty cash fund amount of $200. When replenished, it has petty cash tickets of $31 for gas expense, $31 for postage expense, $15 for supplies expense, and $12 for miscellaneous expenses. Assume the cash balance is not over or short. In the journal entry, Cash would be credited for O A. $77 O B. $74 O C. $89 O D. $62arrow_forwardA. Started a petty cash fund in the amount of $250. B. Replenished petty cash fund using the following expenses: Auto Expense $17, Office Expense $25, Postage Expense $88, Miscellaneous Expense $72. Cash on hand is $15. C. Increased petty cash by $100. Record these transactions. If an amount box does not require an entry, leave it blank. А. В.arrow_forward
- Under the imprest system, which amount the following situations when accounting entry is/are made? a. petty cashier accommodated and encashed the check of her friend from the purchasing department b. Christmas party contributions made the custodian's circle of friends where the custodians is in charge of its safekeeping c. it is a reporting period and the fund aren't replenished yet d. pending request of the petty cash custodian to increase the petty cash fund e. request and disbursement of fun by the company's messenger for the weekarrow_forward10. In Exhibit 3.6, you see a credit sale to G. H. Allen that is recorded in a paper-based accounting system. On July 28, 2021, Aca Pool Co. received check number 6311 from G. H. Allen in payment of his outstanding invoice. Required: a. Record the receipt of Allen's check on the cash receipts prelist, document number CR645. Your instructor will provide you a blank form. b. Use the prelist as your source document to record this cash receipts transaction in the appropriate 14arrow_forwardIf a petty cash fund is established in the amount of $200, and contains $119 in cash and $86 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts Select one: a. Cash, $81 b. Cash, s81; Cash Over and Short, $5 C. Petty Cash, $84. d. Petty Cash, $5.arrow_forward
- Which of the following is true of a petty cash voucher? a.It must be issued once in a month by a bank. b.It must explain the purpose of the payment. c.It must only be used to account for payments of more than $5. d.It must be signed only by the person who authorized the payment.arrow_forwardA $100 petty cash fund has cash of $15 and receipts of $86. The journal entry to replenish the account would include a Select one: a. credit to Cash Over and Short for $3. b. credit to Cash for $86. C. credit to Petty Cash for $1. d. The answer does not exist e. debit to Cash for $86. Next pagearrow_forwardIdentify the two events from the following that cause a Petty Cash account to be credited in a journal entry. a. Fund amount is being reduced. c. Fund is being eliminated. b. Fund amount is being increased. d. Fund is being established.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College