Radford Company established a $500 petty cash fund. The following expenditures were made from the fund: Account of the cash in the fund revealed a balance of $45.
Required:
a) Show the effect of establishing the fund on the accounting equation.
b) What check amount must be written to replenish the fund?
c) Prepare the journal entry to (1) record the recognition of expenses paid from the fund.

Question

Radford Company established a $500 petty cash fund. The following expenditures were made from the fund:  Account of the cash in the fund revealed a balance of $45.
Required:
a) Show the effect of establishing the fund on the accounting equation.
b) What check amount must be written to replenish the fund?
c) Prepare the journal entry to (1) record the recognition of expenses paid from the fund.

Quizplus · Accepted Answer

The Answer of Radford Company established a $500 petty cash fund. The following expenditures were made from the fund:  Account of the cash in the fund revealed a balance of $45.
Required:
a) Show the effect of establishing the fund on the accounting equation.
b) What check amount must be written to replenish the fund?
c) Prepare the journal entry to (1) record the recognition of expenses paid from the fund.

Radford Company Established a $500 Petty Cash Fund