Question 1

The journal entry to replenish a petty cash fund includes a debit to the Petty Cash account and a credit to the Expense account.

Accepted Answer

The journal entry to replenish a petty cash fund includes a debit to the Expense account and a credit to the Petty Cash account. This is because the Petty Cash account is being reimbursed for the expenses paid out of that fund, which is an expense to the company.

Question 2

A petty cash fund was established with a $600 balance.It currently has cash of $19 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 102 \
\hline \text { Office supplies expense } & 285 \
\hline \text { Equipment rental expense } & 79 \
\hline
\end{array}$$ Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Accepted Answer

The total expenses are $466 ($102 + $285 + $79). The cash remaining is $19, so the cash short is $115 ($600 - $466 - $19). Therefore, a debit to Cash Short & Over for $115 is needed to account for the discrepancy.

Question 3

A petty cash fund was established with a $600 balance.It currently has cash of $130 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 115 \
\hline \text { Office supplies expense } & 310 \
\hline \text { Equipment rental expense } & 45 \
\hline
\end{array}$$ Which of the following would be the journal entry to replenish the Petty Cash account?

Accepted Answer

The answer of A petty cash fund was established with...

Question 4

The only time the Petty Cash account is used in a journal entry is when the account is established,increased,or decreased.

Accepted Answer

The Petty Cash account is used in journal entries primarily when it is established, increased, or decreased. These transactions involve moving funds to or from Petty Cash, which is a specific type of asset account used for minor business expenses.

Question 5

A company has a petty cash fund amount of $300.When replenished,it has petty cash receipts of $33 for gas expense,$31 for postage expense,$11 for supplies expense,and $12 for miscellaneous expenses.Assume the cash balance is not over or short.In the journal entry,Cash would be credited for ________.

Accepted Answer

Amount of cash spent = $33 + $31 + $11 + $12 = $87

Question 6

A petty cash fund was established with a $250 balance.It currently has cash of $38 and petty cash tickets totaling $212 for travel expense.Provide the journal entry to record the replenishment of the fund.

Accepted Answer

The answer of A petty cash fund was established with...

Question 7

An imprest system is a way to account for petty cash by maintaining a constant balance in the petty cash account.Cash plus petty cash tickets total the amount allocated to the petty cash fund.

Accepted Answer

An imprest system maintains a constant balance in the petty cash account by using a combination of cash and petty cash tickets. The total amount of these should always equal the pre-determined allocated amount for the petty cash fund.

Question 8

A petty cash fund was established with a $390 balance.It currently has cash of $43 and petty cash tickets totaling $347.Which of the following would be included in the entry to replenish the fund?

Accepted Answer

Calculations: $390 - $43 = $347

Question 9

Which of the following would be included in the entry to record the replenishment of a petty cash fund?

Accepted Answer

When replenishing a petty cash fund, the entry should include a credit to Cash (to reflect the increase in cash) and a debit to the various expense accounts that have been paid out of the petty cash fund. This ensures that the expense accounts reflect the correct amount spent, as well as the correct amount left in the petty cash fund.

Question 10

Jupiter Service Company decides to increase the amount of the petty cash fund from $500 to $600.A journal entry must be made to debit the Cash account and credit the Petty Cash account for $100.

Accepted Answer

The journal entry for increasing the petty cash fund would be a debit to the Petty Cash account for $100 and a credit to the Cash account for $100.

Question 11

A petty cash fund was established with a $575 balance.It currently has cash of $45 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 100 \
\hline \text { Office supplies expense } & 300 \
\hline \text { Equipment rental expense } & 110 \
\hline
\end{array}$$ Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Accepted Answer

The total expenses recorded are $510 ($100 + $300 + $110), and the cash remaining is $45. The total should be $575, so there is a $20 shortage ($575 - $510 - $45). This shortage is recorded as a debit to Cash Short & Over.

Question 12

A petty cash fund was established with a $390 balance.It currently has cash of $45 and petty cash tickets totaling $345.Which of the following would be included in the entry to replenish the fund?

Accepted Answer

Calculations: $390 - $45 = $345

Question 13

The petty cash fund has a current balance of $100.Based on activity in the fund,it is determined that the balance needs to be changed to $700.Which journal entry is needed to make this change?

Accepted Answer

To increase the petty cash fund from $100 to $700, you need to add $600. Therefore, you debit the Petty Cash account and credit the Cash account for $600.

Question 14

The petty cash fund had an initial imprest balance of $200.It currently has $17 in cash,$5 in miscellaneous cash receipts,and an additional $173 in specific cash receipts.The debit to Cash Short & Over would be ________.

Accepted Answer

Cash Short & Over = $200 - $17 - $5 - $173 = $5 short

Question 15

Prepare the journal entries for the following petty cash transactions of Morrison Dental Supplies.
 $$\begin{array} { | l | l | } 
\hline \text { Aug. } 1 & \text { Established a petty cash fund with a } \$ 200 \text { balance. } \
\hline & \begin{array} { l } 
\text { The petty cash fund has } \$ 43 \text { in cash and } \$ 154 \text { in petty } \
\text { cash tickets there were issued to pay for Office Expense } \
( \$ 75 ) \text { and Repair Expense ( } \$ 79 ) \text {. Replenished the fund }
\end{array} \
\text { Aug. 31}& \text {and recorded the expenditures. } \
\hline \text { Oct. 15}&\text { Increased the balance of the petty cash fund to } \$ 250 .\
\hline 
\end{array}$$

Accepted Answer

The answer of Prepare the journal entries for the following...

Question 16

The petty cash fund at Bryan Company has a designated balance of $300.The fund currently holds $120 in cash and $187 in petty cash tickets.Based on this information,which of the following statements is correct?

Accepted Answer

The answer of The petty cash fund at Bryan Company...

Question 17

Morris Company established a petty cash fund with a $400 balance.Which of the following statements is incorrect?

Accepted Answer

A journal entry is not needed when establishing a petty cash fund. The initial funding is recorded by simply reducing the Cash account and increasing the Petty Cash account by the same amount. The correct entry would be to debit Petty Cash and credit Cash for $400.

Question 18

A way to account for petty cash by maintaining a constant balance in the petty cash account and which at any time requires that cash plus petty cash tickets must total the amount allocated to the petty cash fund,is known as the ________.

Accepted Answer

The imprest system is a method of accounting for petty cash that ensures a constant balance is maintained in the petty cash account. This system requires that the cash plus petty cash tickets must total the amount that is allocated to the petty cash fund. This system helps to prevent fraud and ensures that petty cash is being used appropriately.

Question 19

A petty cash fund was established with a $150 balance.It currently has cash of $25 and petty cash tickets as follows: Office expense $120 and Entertainment Expense $20.Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Accepted Answer

Cash Short & Over = $150 - $120 - $20 - $25 = $15 over

Question 20

A petty cash fund was established with a $300 balance.It currently has cash of $73 and petty cash tickets totaling $222 for travel expense.Provide the journal entry to record the replenishment of the fund.

Accepted Answer

The answer of A petty cash fund was established with...

Quiz 7: Internal Control and Cash

The journal entry to replenish a petty cash fund includes a debit to the Petty Cash account and a credit to the Expense account.

The only time the Petty Cash account is used in a journal entry is when the account is established,increased,or decreased.

A petty cash fund was established with a $250 balance.It currently has cash of $38 and petty cash tickets totaling $212 for travel expense.Provide the journal entry to record the replenishment of the fund.

An imprest system is a way to account for petty cash by maintaining a constant balance in the petty cash account.Cash plus petty cash tickets total the amount allocated to the petty cash fund.

A petty cash fund was established with a $390 balance.It currently has cash of $43 and petty cash tickets totaling $347.Which of the following would be included in the entry to replenish the fund?

Which of the following would be included in the entry to record the replenishment of a petty cash fund?

Jupiter Service Company decides to increase the amount of the petty cash fund from $500 to $600.A journal entry must be made to debit the Cash account and credit the Petty Cash account for $100.

A petty cash fund was established with a $390 balance.It currently has cash of $45 and petty cash tickets totaling $345.Which of the following would be included in the entry to replenish the fund?

The petty cash fund has a current balance of $100.Based on activity in the fund,it is determined that the balance needs to be changed to $700.Which journal entry is needed to make this change?

The petty cash fund had an initial imprest balance of $200.It currently has $17 in cash,$5 in miscellaneous cash receipts,and an additional $173 in specific cash receipts.The debit to Cash Short & Over would be ________.

The petty cash fund at Bryan Company has a designated balance of $300.The fund currently holds $120 in cash and $187 in petty cash tickets.Based on this information,which of the following statements is correct?

Morris Company established a petty cash fund with a $400 balance.Which of the following statements is incorrect?

A way to account for petty cash by maintaining a constant balance in the petty cash account and which at any time requires that cash plus petty cash tickets must total the amount allocated to the petty cash fund,is known as the ________.

A petty cash fund was established with a $150 balance.It currently has cash of $25 and petty cash tickets as follows: Office expense $120 and Entertainment Expense $20.Which of the following would be included in the journal entry to replenish the Petty Cash fund?

A petty cash fund was established with a $300 balance.It currently has cash of $73 and petty cash tickets totaling $222 for travel expense.Provide the journal entry to record the replenishment of the fund.