[The following information applies to the questions displayed below.] Service Wo
ID: 340590 • Letter: #
Question
[The following information applies to the questions displayed below.]
Service World maintains a petty cash fund. The fund custodian encountered the following events.
The fund was established when a check for $350 was cashed and deposited into a locked cash box.
An employee submitted a receipt for a customer delivery costing $30 and was reimbursed in full from petty cash.
Another employee submitted a receipt for $70 for locksmith repairs to the office door and was reimbursed in full from petty cash.
An employee submitted a receipt for newspaper advertising that cost the company $60. She was given $60 from the petty cash box.
The petty cash custodian received and cashed a check that fully replenished the petty cash fund.
An employee submitted a receipt for $45 for supplies and was reimbursed in full from petty cash.
An employee submitted a receipt for $75 for filling up his personal vehicle. He was not reimbursed because it would violate company policy.
Service World maintains a petty cash fund. The fund custodian encountered the following events.
PB5-4 Part 2 2. If Service World has $1,500 cash, $400 of government Treasury bills purchased last month with a six- week maturity, and $850 of cash set aside for legal reasons, how much will the company report on the balance sheet as "Cash and Cash Equivalents"? ash and Cash EquivalentsExplanation / Answer
Account Titles and Explanation Debit Credit a) Petty Cash $350.00 Cash $350.00 b) No Journal Entry Required c) No Journal Entry Required d) No Journal Entry Required e) Delivery Expenses $30.00 Office Expenses $70.00 Advertisement Expenses $60.00 Cash $160.00 f ) No Journal Entry Required g) No Journal Entry Required h) Supplies $45.00 Petty Cash (470 - 350) $120.00 Cash $165.00 Note: -No journal entries are recorded when amounts are paid out of the petty cash fund.The transactions are recorded only when the fund is replenished. Part 2 Cash and Cash Equivalent = 1500 + 400 $1,900.00 Restricted cash should be shown separately.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.