Exhibit 22-13

-Refer to Exhibit 22-13. What dollar amounts go in blanks (M)and (N)?

Question

Exhibit 22-13
 
-Refer to Exhibit 22-13. What dollar amounts go in blanks (M)and (N)?

Quizplus · Accepted Answer

From the exhibit, we can see that the beginning balance of the petty cash fund is $500 (A). The total of the receipts (F) is $230, and the total of the disbursements (L) is $605. Therefore, the remaining cash in the fund is $125 (B).

To find the amount to be reimbursed, we need to find the difference between the beginning balance and the remaining cash, and add the total of disbursements. So, the amount to be reimbursed should be $500 - $125 + $230 + $125 = $730 (M).

To balance the petty cash funds account, we need to record the reimbursement by debiting the various accounts and crediting Petty Cash. So, the amount for the credit entry should be $730 (N).

Therefore, the correct answer is C.

Exhibit 22-13 -Refer to Exhibit 22-13. What Dollar Amounts Go in Blanks