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Alika [10]
3 years ago
14

XYZ Co. decided to create a petty cash fund. They estimated that $100 would be needed in the fund. Demonstrate the correct journ

al entry to create the account by choosing the correct action from those below. Petty Cash is credited for $100. Miscellaneous Expense is debited for $100. Cash is debited for $100. Petty Cash is debited for $100.
Business
1 answer:
ra1l [238]3 years ago
4 0

Answer:

Petty cash is debited for $100

Explanation:

Petty cash is a small amount of fund which is kept in the business for day to day expenses. Cash is issued from this fund for daily small expense which is not appropriate to withdraw from the bank by check.

Journal Entry will be as follow

Dr. Petty cash $100

Cr. Cash          $100

Cash is transferred from cash account to petty cash account, both of these are asst account and have a debit balance. Tot increase the petty cash account balance it is debited and to decrease the cash account balance it is credited.

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Delvig [45]
It would be d bc it not everyone does all of the things they are saying
7 0
3 years ago
Read 2 more answers
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $40,000. Residual value at the end of an estimated 7 year
Degger [83]

Answer:

Part a

2021  = $7,000

2022  = $6,000

Part b

2021  = $5,250

Explanation:

Sum of the year`s digit method provide for higher depreciation in early life of the asset with lower depreciation in later years.

Step 1

<em>Some of digits calculation :</em>

Year      Digits

2021        7

2022       6

2023       5

2024       4

2025       3

2026       2

2027        1

Total      28

Step 2

<em>Determine the depreciable amount</em>

Depreciable amount = Cost - Residual value

                                   = $40,000 - $12,000

                                   = $28,000

Step 3

<em>Depreciation expense calculations</em>

2021 = 7 / 28 x $28,000 = $7,000

2022 = 6/ 28 x $28,000 = $6,000

assuming the equipment was purchased on March 31, 2021

2021 = $7,000 x 9/12 = $5,250

3 0
3 years ago
You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock
iogann1982 [59]

Answer:

dividend payment = $6

Explanation:

given data

sell = $65

pay = $65.74

require a return =  8%

solution

we will use here present value formula that is express as

current stock price ( present value ) = \frac{future\ value}{1 + rate}  ........................1

$65.74 = \frac{65+d}{1+0.08}

here d is dividend

solve it we get

d = $6.00

so dividend payment = $6

6 0
2 years ago
Prepare the issuer’s journal entry for each of the following separate transactions.a. On March 1, Atlantic Co. issues 51,000 sha
Shalnov [3]

Answer:

March 1

Account                                             Debit               Credit

Cash                                                 $323,000

Common Stock                                                         $153,000

Paid-In Capital in Excess

of Par Value                                                              $170,000

April 1

Account                                              Debit                Credit

Cash                                                 $87,000

Common Stock-no par value                                    $87,000

April 6

Account                                             Debit                 Credit

Inventory                                          $56,000

Common Stock                                                           $56,000

Machinery                                        $170,000

Paid-In Capital in Excess of

Common Stock                                                           $170,000

Note Payable                                                              $92,000

Cash                                                 $92,000

4 0
3 years ago
In 2016, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients andearned $25,000. The client
Artemon [7]

Answer:

$27,333.33

Explanation:

The computation of the amount of income reported is shown below:

= Provided services to the customer + Payment received × number of months ÷ given number of months

= $25,000 + $12,000 × 7 months ÷ 36 months

= $25,000 + $2,333.33

= $27,333.33

The seven months is calculated from the June 1 to December 31. We assume the books are closed on December 31

7 0
2 years ago
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