FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On December 31, 20x1, the petty cash fund of Kristelle Co. with a general leger balance
of $15,000 comprises the following:
Coins and currencies
Petty cash vouchers:
Gasoline for delivery equipment
Medical supplies for employees_
IOU'S:
2,550
3,000
2,040 5,040
Advances to employees
A sheet of paper with names of several employees
together with contribution to bereaved employee,
attached is a currency of
2,220
Checks:
Check drawn to the order of the petty cash custodian
Personal check drawn by the petty cash custodian
2,400
3,000
2,400
a. The entry to replenish the fund on December 31, 20x1 includes a
A. credit to cash shortage or overage for $2,910.
B. debit to cash shortage or overage for $2,910.
C. credit to cash in bank for $9,450.
D. credit to petty cash fund for $9,450.
b. Which of the following should be recorded in Accounts Receivable?
A. Receivables from officers representing employee loans
B. Receivables from subsidiaries
C. Dividends receivable
D. None of these
B. the profit for the period.
C. the net realizable value of accounts receivable.
D. the working capital.
c. When the allowance method of recognizing bad debts expense is used, the
entry to record the write-off of a specific uncollectible account would decrease
A. the allowance for doubtful accounts.
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Transcribed Image Text:On December 31, 20x1, the petty cash fund of Kristelle Co. with a general leger balance of $15,000 comprises the following: Coins and currencies Petty cash vouchers: Gasoline for delivery equipment Medical supplies for employees_ IOU'S: 2,550 3,000 2,040 5,040 Advances to employees A sheet of paper with names of several employees together with contribution to bereaved employee, attached is a currency of 2,220 Checks: Check drawn to the order of the petty cash custodian Personal check drawn by the petty cash custodian 2,400 3,000 2,400 a. The entry to replenish the fund on December 31, 20x1 includes a A. credit to cash shortage or overage for $2,910. B. debit to cash shortage or overage for $2,910. C. credit to cash in bank for $9,450. D. credit to petty cash fund for $9,450. b. Which of the following should be recorded in Accounts Receivable? A. Receivables from officers representing employee loans B. Receivables from subsidiaries C. Dividends receivable D. None of these B. the profit for the period. C. the net realizable value of accounts receivable. D. the working capital. c. When the allowance method of recognizing bad debts expense is used, the entry to record the write-off of a specific uncollectible account would decrease A. the allowance for doubtful accounts.
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