Answer:
The total liabilities amounts to $200,000
Explanation:
The total liabilities of Asmine Smith is computed as:
Total Liabilities = Owing on Condo + Owning a Car
where
Owning on Condo is $190,000
Owning a Car is $10,000
Putting the values above:
= $190,000 + $10,000
= $200,000
Note: Sum Insured under the Insurance Policy, is neither a liability nor assets. And Premium paid is an expense, will be treated as Current Assets.
Answer: The correct answer is e) $32.
Explanation:
Petty cash fund. $300
Office supplies. (80)
Merchandise inventory. (160)
Miscellaneous expenses. (20)
Cash shortage. (8)
Balance in petty cash. $32
In terms of accounting entries,
Debit Office supplies. $80
Debit Merchandise inventory. $160
Debit Miscellaneous expenses. $20
Debit Cash shortage. $8
Credit Petty cash refund. $268
In the above entries, $268 would be refunded to petty cash fund to reinstate it to $300.
