When are the only times the Petty Cash account is used in a journal entry?

Solutions

Expert Solution

Step 1: Definition of petty cash account

The petty cash fund account is the account used to record the transaction of the petty cash fund.

Step 2: Petty cash account used in a journal entry

The petty cash account is used in the journal entry only when the amount of the fund is increased or decreased. In simple words, the petty account is used when the petty cash fund is affected. The petty cash fund increases when the amount is received, and the petty cash fund amount decreases when payment is made.

The petty cash account used the transaction of the petty cash fund made.

Sahil Dangi answered 1 year ago

Next > < Previous

Related Solutions

Prepare a T-account for Petty Cash and post to the account. What is the balance of the Petty Cash account at all times?

Question Controlling petty cash Just Hangin’ Night Club maintains an imprest petty cash fund of $150, which is under the control of Sandra Morgan. At March 31, the fund holds $14 cash and petty cash tickets for office supplies, $128, and delivery expense, $15. Requirements 1. Explain how an imprest petty cash system works. 2. Journalize the establishment of the petty cash fund on March 1 and the replenishing of the fund on March 31. 3. Prepare a T-account...

When replenishing the petty cash fund: The journal entry includes a credit to: 1. Postage expense...

When replenishing the petty cash fund: The journal entry includes a credit to: 1. Postage expense 2. Supplies Expense 3. Cash 4. Petty Cash Selected data from the financial statements of Bloom's Garden Centre are provided below. 2017 2016 Cash and cash equivalents $ 60000 $ 38000 Inventory $30000 $28000 Total assets 450000 380000 Cash flow from operations $4500000 $3390000 Dividends $340000 $320000 Capital expenditures $2000000 $1800000 Which of the following would result from a vertical analysis of Bloom's cash...

What is the purpose of a Petty Cash Fund? Provide an example journal entry that a...

What is the purpose of a Petty Cash Fund? Provide an example journal entry that a company might use to set up a Petty Cash Fund. Additionally, provide two example journal entries of payments from the Petty Cash Fund AND one example journal entry example to replenish the balance in the Fund.

What is the purpose of a Petty Cash Fund? Provide an example journal entry that a...

$135 petty cash fund has cash of $18 and receipts of $120. The journal entry to...

$135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a a. credit to Petty Cash for $120 b. debit to Cash for $120 c. credit to Cash Short and Over for $3 The bank reconciliation a. should be prepared by an employee who records cash transactions b. is part of the internal control system c.is for information purposes only d.is sent to the bank for verification Which one...

A $70 petty cash fund has cash of $14 and receipts of $43. The journal entry...

A $70 petty cash fund has cash of $14 and receipts of $43. The journal entry to replenish the account would include a credit to Petty Cash for $43. Cash Over and Short for $13. Cash for $43. Cash for $56. A $124 petty cash fund has cash of $14 and receipts of $106. The journal entry to replenish the account would include a credit to Cash for $106. debit to Cash for $106. credit to Petty Cash for $110....

Make the general journal entry to create the petty cash fund. Include an explanation

Question Accounting for petty cash Jackie’s Dance Studio created a $220 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: Petty Cash Ticket No. Item Account Debited Amount 1 Delivery of programs to customers Delivery Expense $ 20 2 Mail package Postage Expense 10 3 Newsletter Printing Expense 25 4 Key to closet Miscellaneous Expense 40 5 Copier paper Office Supplies 70 Requirements 1. Make the general journal entry to...

Create the journal entry to establish a petty cash fund of $400 for Johnson Corp. on...

Create the journal entry to establish a petty cash fund of $400 for Johnson Corp. on November 1. On November 30, a physical count of the petty cash shows a balance of $277 along with the following receipts: Postage Expense $40 Misc. Expenses $80 Prepare the journal entry for November 30 to reimburse the petty cash. On December 1, Johnson Corp. wants to increase the petty cash balance to $450. Prepare the entry to increase the petty cash. Clayborn Company...

The entry to establish a petty cash fund includes: a debit to Cash and a credit...

The entry to establish a petty cash fund includes: a debit to Cash and a credit to Petty Cash. a debit to Cash and a credit to Cash Over and Short. a debit to Petty Cash and a credit to Cash. a debit to Petty Cash and a credit to Accounts Receivable. a debit to Petty Cash and a credit to Petty Cash Payable.

Journalizing petty cash Prepare the journal entries for the following petty cash transactions of Everly Gaming Supplies:

Question Journalizing petty cash Prepare the journal entries for the following petty cash transactions of Everly Gaming Supplies:March 1 Established a petty cash fund with a $250 balance.31 The petty cash fund has $24 in cash and $235 in petty cash tickets that were issued to pay for Office Supplies ($35) and Entertainment Expense ($200). Replenished the fund and recorded the expenditures. April 15 Increased the balance of the petty cash fund to $300.

Subjects