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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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Contingencies are potential liabilities that might result because of a past event

Explanation:

Reasonably possible losses are only described in the notes and remote contingencies can be omitted entirely from financial statements.

4 0
2 years ago
As jamal's income rises, his demand for pizza does not change. it follows that, for jamal, pizza is a(n)
irga5000 [103]
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8 0
3 years ago
ABC company wants to start a new project but is unable to obtain the financing under any circumstances. This firm is facing:
Norma-Jean [14]

Answer:

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5 0
2 years ago
__________ is also called back-office processes, these are invisible to the external customer but essential to the effective man
mrs_skeptik [129]

Answer:

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the interest rate that determines the amount of cash interest paid each interest date is referred to as the
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