QS 8-4 Petty cash accounting 1. The petty cash fund of the Brooks Agency is esta
ID: 2560650 • Letter: Q
Question
QS 8-4
Petty cash accounting
1.
The petty cash fund of the Brooks Agency is established at $150. At the end of the current period, the fund contained $28 and had the following receipts: film rentals, $24; refreshments for meetings, $46 (both expenditures to be classified as Entertainment Expense); postage, $30; and printing, $22. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.
2.
Identify 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
____
b.
Fund amount is being increased
____
c.
Fund is being eliminated
____
d.
Fund is being established
1.
The petty cash fund of the Brooks Agency is established at $150. At the end of the current period, the fund contained $28 and had the following receipts: film rentals, $24; refreshments for meetings, $46 (both expenditures to be classified as Entertainment Expense); postage, $30; and printing, $22. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.
2.
Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.
Explanation / Answer
Brooks Agency 1.a) Establishment of the petty cash fund debit credit Petty Cash A/c $150 Cash at Bank A/c $150 1.b) Reimbursemnt of the fund (i) Entertainment Expense A/c $70 Postage A/c $30 Printing A/c $22 Petty Cash A/c $122 (being various expenses paid through petty cash) (ii) for replenishing the fund spent Petty Cash A/c $122 Cash at Bank A/c $122 2) Two events that cause petty cash A/c is credited a) Fund amount is being reduced c) fund is being eliminated In the above two cases the petty cash account will be credited
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.