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A Company Had a Petty Cash Account with a Stated

Question 87

Multiple Choice

A company had a petty cash account with a stated balance of $300 on January 1, 2001. Petty cash expenses for 2001 were as follows: postage, $45; supplies used, $145; parking fees, $30. At the end of 2001, the auditor counted the money in the petty cash fund and found $50 cash on hand. The December 31, 2001, entry regarding the petty cash fund should be:

 1 Postage expense  45  
   Supplies expense  145  
   Parking expense  30  
   Cash    220
 2  Postage expense  45  
   Supplies expense  145  
   Parking expense  30  
   Cash short  30  
   Cash    250
 3  Postage expense  45  
   Supplies expense  145  
   Parking expense  30  
   Cash short  30  
   Cash    30
   Petty cash    220
 4  Postage expense  45  
   Supplies expense  145  
   Parking expense  30  
   Cash short    30
   Petty cash    250


A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4

Correct Answer:

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