Flora's Flowers established a $400 petty cash fund. The following expenditures were made from the fund: A count of the cash in the fund revealed a balance of $89.00.
Required:
a) Show the effect of establishing the fund on the accounting equation.
b) For what amount must the check be written to replenish the fund?
c) Prepare the journal entry to record the recognition of expenditures paid from the fund and replenishment of the fund.

Question

Flora's Flowers established a $400 petty cash fund. The following expenditures were made from the fund:  A count of the cash in the fund revealed a balance of $89.00.
Required:
a) Show the effect of establishing the fund on the accounting equation.
b) For what amount must the check be written to replenish the fund?
c) Prepare the journal entry to record the recognition of expenditures paid from the fund and replenishment of the fund.

Quizplus · Accepted Answer

The Answer of Flora's Flowers established a $400 petty cash fund. The following expenditures were made from the fund:  A count of the cash in the fund revealed a balance of $89.00.
Required:
a) Show the effect of establishing the fund on the accounting equation.
b) For what amount must the check be written to replenish the fund?
c) Prepare the journal entry to record the recognition of expenditures paid from the fund and replenishment of the fund.

Flora's Flowers Established a $400 Petty Cash Fund