Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Question
Chapter 7.A, Problem 5BE
1.
To determine
Record the
2)
To determine
Record the journal entry to replenish the petty cash fund.
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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.
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.
4. Robinson Legal Services, Inc. established a $220 petty cash fund. During the month, the fund
was used to pay for the following expenditures:
Petty Cash
Ticket No.
1
2
3
4
5
Item
Account Debited
Delivery of programs to customers Delivery Expense
Mail package
Postage Expense
Printing Expense
Miscellaneous Expense
Office Supplies
DATE
Newsletter
Key to closet
Copier paper
(a) Record the journal entry to create the petty cash fund.
(b) At month-end, the bookkeeper counted the cash in the petty cash box. There was $40.
Record the journal entry (entries) needed at the end of the month to replenish the fund.
(c) If the bookkeeper wanted to decrease the petty cash fund to $120, what journal entry would
he record?
DATE
ACCOUNT
ACCOUNT
DEBIT
Amount
$ 20
10
25
40
70
DEBIT
CREDIT
CREDIT
Chapter 7 Solutions
Financial Accounting, Student Value Edition (5th 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. 8BPCh. 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 - Aging of accounts receivable allowance method...Ch. 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 - Accounting for notes receivable (Learning...Ch. 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 - Financial Analysis Purpose: To help familiarize...Ch. 7 - Industry Analysis Purpose: To help you understand...Ch. 7 - Prob. 1SBACh. 7 - Prob. 1WC
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