Business, 21.02.2020 19:58 DeathFightervx

Brooks Agency set up a petty cash fund for $250. At the end of the current period, the fund contained $177 and had the following receipts:
entertainment, $32;
postage, $22; and printing, $19.
Required:
a. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.

Answers: 3

Show answers

Answers

Answer from: sierraaasifuent

a) Petty Cash Dr.250

Cash Cr. 250

b) Entertainment Dr. 32

Postage Dr. 22

Printing Dr. 19

Petty Cash Cr. 73

So $ 73 will be reimbursed from Cash Account to Petty Cash

Petty Cash Dr.73

Cash Cr.73

Explanation:

All the expenses can never be paid through bank account or cheque. So companies establish petty cash fund to meet routine expenses.

a)In our example above, petty cash is an asset so any increase will be debited and cash is also asset. Therefore decrease in it will be credited

B) All expenses from petty cash will be debited because increase in expense is debited. Therefore decrease in cash is credited.

Answer from: samy14

a) journal entry to record setting up of petty cash fund

Petty cash Fund Debit $ 250

Cash Credit $ 250

b) journal entry to record reimbursement of the fund

Petty cash Fund Debit $ 177

Cash Credit $ 177

Explanation:

The initial journal entry to record the setting up of the fund is by a debit to the petty cash fund and crediting cash. A bank account can also be used if a cheque withdrawal is amd to set up the fund. The initial set up amount is the amount of the journal entry

The reimbursement/ replenishment of the fund is with the amount that has been consumed for petty cash payments.

The actual recording of expenses is made with a separate journal entry debiting relevant expense accounts and crediting petty cash fund

Answer from: Quest

They are enjoying the advantage of independence while running their own small business. they can go where they want when they want to, because they control the restaurant's hours. they can also make time for life emergencies, and set the hours to be when they do the best cooking.

Answer from: Quest

Attend and participate in fall prevention training. just took quiz.

Another question on Business

Business, 22.06.2019 10:30

The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.

Answers: 1

Answer

Business, 22.06.2019 12:00

In mexico, many garment or sewing shops found they could entice many young people to work for them if they offered clean, air conditioned work areas with high-quality locker rooms to clean up in after the work day. typically, traditional garment shops had to offer to get workers to apply for the hard, repetitive, and somewhat dangerous work. a. benchmark competitive wages b.compensating differentials c. monopoly wages d. wages based on human capital development of each employee

Answers: 3

Answer

Business, 22.06.2019 13:50

Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.

Answers: 2

Answer

Business, 22.06.2019 19:00

20. to add body to a hearty broth, you may use a. onions. b. pasta. c. cheese. d. water.

Answers: 2

Answer

You know the right answer?

Brooks Agency set up a petty cash fund for $250. At the end of the current period, the fund containe...

Questions