Question 1

Prepare the journal entries for the following petty cash transactions of Williamson Dental Supplies.Omit explanations.

Accepted Answer

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

Question 2

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.Prepare the journal entry to record the replenishment of the fund.Omit explanation.

Accepted Answer

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

Question 3

A petty cash fund was established with a $200 balance.It currently has cash of $35 and petty cash tickets as follows: Office expense $130 and Entertainment Expense $45.Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Accepted Answer

B)Cash Short & Over = $200 - $130 - $45 - $35 = $10 over

Question 4

Debit cards offer the customer the convenience of buying something without having to pay cash immediately.

Accepted Answer

Debit cards reduce the customer's bank account immediately but allow the customer to pay electronically instead of with currency or writing a check.

Question 5

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, reflecting changes in the fund's balance rather than individual transactions made from the fund.

Question 6

Prepare the journal entries for the following petty cash transactions of City Coffee Shop.Omit explanation.

Accepted Answer

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

Question 7

Under the gross method,when the credit card processor deposits the cash proceeds from credit and debit card sales ________.

Accepted Answer

Under the gross method, the credit card processor deposits the full amount of the sales into the company's bank account and later deducts the processing fees separately. This means the initial deposit reflects the gross amount of the sales, and the fees are handled in a subsequent transaction.

Question 8

The petty cash fund has a current balance of $250,which is the established fund balance.Based on activity in the fund,it is determined that the balance needs to be changed to $600.Which journal entry is needed to make this change?

Accepted Answer

Since the established fund balance is $250, and the balance needs to be increased to $600, a total of $350 needs to be added to the petty cash fund. This is accomplished by debiting the Petty Cash account (to increase the balance) and crediting the Cash account (to reflect the transfer of cash from the main account to the petty cash fund) for a total of $350. Therefore, option C is the correct choice.

Question 9

Atlas Service Company decides to increase the amount of the petty cash fund from $350 to $800.A journal entry must be made to debit the Cash account and credit the Petty Cash account for $450.

Accepted Answer

The journal entry should be a debit to Petty Cash for $450 and a credit to Cash for $450. Increasing the petty cash fund would not involve debiting the cash account.

Question 10

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.Prepare the journal entry to record the replenishment of the fund.Omit explanation.

Accepted Answer

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

Question 11

Proceeds from credit and debit card transactions are deposited on the day of the actual sale.

Accepted Answer

Proceeds from credit and debit card transactions are deposited within a few days of the actual sale.

Question 12

By accepting credit and debit cards,companies are able to attract more customers.

Accepted Answer

Accepting credit and debit cards makes transactions easier for customers and expands the payment options that a company offers, thus making it more attractive to potential customers who prefer to pay with plastic instead of cash.

Question 13

Companies obtain cash from credit and debit card transactions by using third-party processors.

Accepted Answer

Companies hire a third-party processor to process credit and debit card transactions.

Question 14

If the amount of the petty cash fund is decreased,the Petty Cash Fund account should be credited.

Accepted Answer

When the amount of the petty cash fund is decreased, it means that money has been taken out of the fund. Since the petty cash fund is an asset account, it needs to be credited to reflect the decrease in funds available.

Question 15

Sales through credit cards and debit cards are journalized in the same way as sales on account.

Accepted Answer

Sales through credit cards and debit cards are typically recorded immediately as cash sales because the funds are guaranteed by the card issuer, unlike sales on account which are recorded as accounts receivable since payment is received at a later date.

Question 16

The petty cash fund at Brookshire Company has a designated balance of $250.The fund currently holds $125 in cash and $127 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 Brookshire Company...

Question 17

The two common methods of processing credit and debit card transactions are gross and net.

Accepted Answer

Gross and net are the two common methods of processing credit and debit card transactions.

Question 18

Under the net method of handling credit and debit card payments,the ________.

Accepted Answer

The answer of Under the net method of handling credit...

Question 19

Regarding the gross method of handling credit and debit card transactions,which of the following statements is correct?

Accepted Answer

The gross method of handling credit and debit card transactions involves depositing the total sale amount on the date of the actual sale, and then deducting the processing fees for all transactions processed for the month from the company's bank account, often on the last day of the month. On the date of sale, the Sales Revenue account is credited for the full amount of the sale, and a separate account is created to track the processing fees. The journal entry for a sale on account would be different from the journal entry for a credit or debit card sale under the gross method.

Question 20

Debit cards reduce the customer's bank account immediately but allow the customer to pay electronically instead of with currency or writing a check.

Accepted Answer

Debit cards work by deducting the amount of a purchase from the customer's bank account immediately, allowing for electronic payment instead of cash or checks.

Quiz 8: Internal Control and Cash

Prepare the journal entries for the following petty cash transactions of Williamson Dental Supplies.Omit explanations.

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.Prepare the journal entry to record the replenishment of the fund.Omit explanation.

A petty cash fund was established with a $200 balance.It currently has cash of $35 and petty cash tickets as follows: Office expense $130 and Entertainment Expense $45.Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Debit cards offer the customer the convenience of buying something without having to pay cash immediately.

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

Prepare the journal entries for the following petty cash transactions of City Coffee Shop.Omit explanation.

Under the gross method,when the credit card processor deposits the cash proceeds from credit and debit card sales ________.

The petty cash fund has a current balance of $250,which is the established fund balance.Based on activity in the fund,it is determined that the balance needs to be changed to $600.Which journal entry is needed to make this change?

Atlas Service Company decides to increase the amount of the petty cash fund from $350 to $800.A journal entry must be made to debit the Cash account and credit the Petty Cash account for $450.

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.Prepare the journal entry to record the replenishment of the fund.Omit explanation.

Proceeds from credit and debit card transactions are deposited on the day of the actual sale.

By accepting credit and debit cards,companies are able to attract more customers.

Companies obtain cash from credit and debit card transactions by using third-party processors.

If the amount of the petty cash fund is decreased,the Petty Cash Fund account should be credited.

Sales through credit cards and debit cards are journalized in the same way as sales on account.

The petty cash fund at Brookshire Company has a designated balance of $250.The fund currently holds $125 in cash and $127 in petty cash tickets.Based on this information,which of the following statements is correct?

The two common methods of processing credit and debit card transactions are gross and net.

Under the net method of handling credit and debit card payments,the ________.

Regarding the gross method of handling credit and debit card transactions,which of the following statements is correct?

Debit cards reduce the customer's bank account immediately but allow the customer to pay electronically instead of with currency or writing a check.