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Natali [406]
3 years ago
10

Havermill co. establishes a $460 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated recei

pts on that date represent $94 for office supplies, $179 for merchandise inventory, and $43 for miscellaneous expenses. the fund has a balance of $144. on october 1, the accountant determines that the fund should be increased by $92. the journal entry to record the establishment of the fund on september 1 is:
Business
1 answer:
svp [43]3 years ago
4 0

Answer:

Explanation:

The journal entry to record the establishment of the fund on September 1 is:

Debit: Petty Cash. $460

Credit: Bank. $460

Being cash drawn for petty cash.

Other journal entry for the disbursement of the petty cash fund are:

1. Debit: Office Supplies. $94

Credit: Petty cash. $94

Being cash paid for office supplies

2. Debit:Merchandise inv. $170

Credit: Petty Cash. $170

Being cash paid for merchandise inventory

3. Debit: Miscellaneous exp. $43

Credit : Petty cash. $43

Being cash paid for miscellaneous expenses.

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3 0
3 years ago
Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a partnership. The patent had a book value of $8,
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Answer:

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12/31               Cash                                               $23,000

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                    Allowance for doubtful debt                                    $2,000

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7 0
2 years ago
The purpose of the liberty loan campaign illustrated in the drawing above was to
yKpoI14uk [10]

Answer:

The correct answer is Finance American involvement in the First World War.

Explanation:

Apart from war bonds, there was another source of financing for the First World War which consisted of borrowing very high amounts in order to be paid in a relatively short period of time. With the bonds, a series of obligations of the states are acquired that must be fulfilled in a period of time and at a determined interest rate.

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Given:

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Computation of profit earning ratio:

Profit earning ratio (P\E ratio) = Current stock price / Yearly profit on each share

Profit earning ratio (P\E ratio) = $100 / $10

Profit earning ratio (P\E ratio) = 10

It is computed that MMC's Profit earning ratio is nearer to the industry averages P/E ratio so, the investor can wait for some time to purchase this stock.

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