Question

Alani’s Hawaiian segment had revenues of $2,079 million, operating income of $1,023 million, and average assets of $1,333 million. The Hawaiian segment return on assets is:

• 49.21%

• 130.30%

• 64.12%

• 155.96%

• 76.74%

Assume that the custodian of a $450 petty cash fund has $60.70 in coins and currency plus $384.00 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

• A credit to Cash for $389.30.

• A debit to Petty Cash for $384.00.

• A debit to Cash for $378.70.

• A debit to Cash for $389.30.

• A credit to Cash Over and Short for $5.30.

Spencer Co. has a $350 petty cash fund. At the end of the first month the accumulated receipts represent $58 for delivery expenses, $187 for merchandise inventory, and $27 for miscellaneous expenses. The fund has a balance of $78. The journal entry to record the reimbursement of the account includes a:

• Debit to Petty Cash for $350.

• Debit to Cash Over and Short for $78.

• Credit to Cash for $272.

• Credit to Inventory for $187.

• Credit to Cash Over and Short for $78.

Answer 1

SOLUTION

Question -1

Return on assets = 76.74% , thus option E is correct.

Return on assets = Operating income / Average assets  

= $1,023 million / $1,333 million

= 76.74%

Question -2

Correct option is Option A i.e. A credit to Cash for $389.30

Cash shortage = $450 - $60.70 - $384 = $5.30

Entry would be-

Expenses	384
Cash over and short	5.30
Cash		389.30

Question -3

Correct option is Option C i.e. Credit to Cash for $272

Delivery expenses	58
Merchandise inventory	187
Miscellaneous expense	27
Cash		272