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Artemon [7]
3 years ago
14

The petty cash fund of the Brooks Agency is established at $250. At the end of the current period, the fund contained $172 and h

ad the following receipts: entertainment, $41; postage, $25; and printing, $12.
Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.
a. Fund amount is being reduced.b. Fund amount is being increased.c. Fund is being eliminatedd. Fund is being established.
Business
1 answer:
KatRina [158]3 years ago
7 0

Answer:

a.

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Petty Cash                                   $250

                     Cash                                                                               $250

b.

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Entertainment expense                    $41

                      Postage                                             $25

                      Printing                                              $12

                     Petty Cash                                                                    $  78

Date              Account Title                                  Debit                     Credit

XX-XX-XX     Petty Cash                                       $78

                      Cash                                                                                $78

2. Reasons why a Petty Cash account would be credited:

a. Fund amount is being reduced.

c. Fund is being eliminated

When the fund is being reduced by expenses, it is credited as shown above.

When the fund is to be eliminated, it will be credited so as to remove all the money in it.

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Scilla [17]

D. Nowzer is an internal customer as a sales distributor.

7 0
3 years ago
Read 2 more answers
Chet Bowes owns his own landscaping business, including all the land on which the company grows its plants, and all the equipmen
aliya0001 [1]

Answer:

Inheritance

Explanation:

The above question highlights example of inheritance. Whenever the ownership of business is transferred from one generation to another, it can be taken as an example of inheritance in a capitalist system.

The same has happened in the above question as well. Chet Bowes who owned his own lanscapped business has now transferred the ownership to his son Josh who has recently taken charge, now it is very much clear from the question neither Josh built the company on his own now was hired on the basis of his capabilities, the transfer happened on the basis of his relationship with the owner of the company. The question shows an example of inheritance.

5 0
3 years ago
Answer the following questions about prepaid​ expenses:
pochemuha

Answer:

the numbers are missing, so I looked for a similar question:

a. On ​1, Tree Service prepaid $7,200 for six​ months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts​ involved, and show their balances at adjusts the accounts only at ​31, the end of its fiscal year.

Dr Rent expense 1,200 (= $7,200 / 6)

    Cr Prepaid rent 1,200

Balances:

Prepaid rent 6,000

Rent expense 1,200

b. On ​1, Tree Service paid $1,050 for supplies. At ​31, has $400 of supplies on hand. Make the required journal entry at 31. Then post all amounts to the accounts and show their balances at 31. Assume no beginning balance in supplies.

Dr Supplies expense 650 (= $1,050 - $400)

    Cr Supplies 650

Balances:

Supplies 400

Supplies expense 650

c. On ​1, Tree Service prepaid for six​ months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts​ involved, and show their balances at adjusts the accounts only at ​31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at 31.

SAME AS QUESTION A

6 0
3 years ago
8. As a generic legal term.
Serga [27]

Answer: C) Corporation

Explanation: A Corporation can be Simply defined as a legal entity who's privileges, liabilities and rights are different or separate from the group of person who created it. That is, if the business get sued to court, what ever the punishment or retribution is, it will not directly affect the owners but the business itself. If the company's car on duty accidentally crashed into a person's shop, the company will pay for it, not the driver or the owners of the business.

So corporation means any group of person with a legal entity.

7 0
3 years ago
Below is the balance sheet for Glucose Control Company as of Dec. 31, 2015. The company reported an annual net income of $86,000
jekas [21]

Answer:

Glucose Control Company

a.  The value of total equity would be $58,000 on December 31, 2016.

b. The value of total equity would be $101,000 on December 31, 2016.

c. The value of total equity would be $144,000 on December 31, 2016.

d. The value of total equity would be $101,000 on December 31, 2016.

Explanation:

a) Data and Calculations:

GLUCOSE CONTROL COMPANY

Balance Sheet as of December 31, 2015:

Assets                                          Liabilities and Equity

Cash                              8,000     Accounts payable        16,000

Marketable securities  2,000     Notes payable               6,000

Accounts receivable    6,000     Current liabilities        22,000

Inventory                    45,000     Long term debt          95,000

Current assets           61,000     Total liabilities             117,000

Machines                   34,000     Paid in capital             20,000

Real estate              800,000     Retained earnings     38,000

Fixed assets              114,000     Equity                         58,000

Total assets              175,000    Total liab. & equity    175,000

Annual net income for 2016 = $86,000

Scenario A:

Total assets = 261,000 - 86,000 = 175,000

Total liabilities 117,000

Total equity =  144,000 - 86,000 = 58,000

Scenario B:

Total assets = 261,000 - 43,000 = 218,000

Total liabilities 117,000

Total equity =  144,000 - 43,000 = 101,000

Scenario C:

Total assets = 261,000 - 86,000 = 175,000

Total liabilities 117,000 - 86,000 = 31,000

Total equity =  144,000

Scenario D:

Total assets = 261,000 - 43,000 - 2,000 = 216,000

Total liabilities 117,000 - 2,000 = 115,000

Total equity =  144,000 - 43,000 = 101,000

b) The effect of dividend payment on equity is that cash dividends reduce the total equity just as cash is diminished.  But when it retains its net income without paying dividends, the total equity is increased just as its assets are bolstered.

5 0
3 years ago
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