Practicing for my accounting exam… Just want to make sure I'm right.. Can you correct me if i'm wrong? Thx.
1. Gandolf Company established a $250 petty cash fund on January 1, 2011. On March 1, 2011 the fund contained $160 in receipts for miscellaneous expenses and $88 in cash. The entries necessary to replenish the petty cash fund will
A. increase assets by $250.
B. decrease equity by $160.
C. increase equity by $162.
D. decrease assets by $162.
I picked D. Is it correct?
2. The owner of the Kappas Company established a petty cash fund amounting to $425. What is the effect on the financial statements of the entry to record this transaction?
Answer: ASSET -> 425 will decrease in Cash and 425 Petty Cash will increase = 0 or No change in Asset right?
3. Black Company established a petty cash fund in the amount of $200. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $15 in cash. What effect will the entries to replenish the fund have on assets and expenses?
Assets Expenses
A. - $180 +185
B. - $185 +$185
C. -$185 +$180
D. -$180 +$180
I picked C. Am I right?
That's all Thank you :)
1. Gandolf Company established a $250 petty cash fund on January 1, 2011. On March 1, 2011 the fund contained $160 in receipts for miscellaneous expenses and $88 in cash. The entries necessary to replenish the petty cash fund will
A. increase assets by $250.
B. decrease equity by $160.
C. increase equity by $162.
D. decrease assets by $162.
I picked D. Is it correct?
2. The owner of the Kappas Company established a petty cash fund amounting to $425. What is the effect on the financial statements of the entry to record this transaction?
Answer: ASSET -> 425 will decrease in Cash and 425 Petty Cash will increase = 0 or No change in Asset right?
3. Black Company established a petty cash fund in the amount of $200. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $15 in cash. What effect will the entries to replenish the fund have on assets and expenses?
Assets Expenses
A. - $180 +185
B. - $185 +$185
C. -$185 +$180
D. -$180 +$180
I picked C. Am I right?
That's all Thank you :)
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all seem correct to me