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Friday, August 6, 2010

Valix Finacc vol 1 Problem 3-12

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 3-12


Requirement 1

2008
Dec.   1   Petty cash fund                                                                 10,000
                        Cash in bank                                                                               10,000

         20   Selling expenses                                                                 5,000
               Miscellaneous expenses                                                      2,000
               Equipment                                                                          2,000
                        Cash in bank                                                                                9,000

         31  Receivable from employee                                                2,000
               Selling expenses                                                                  1,500
              Transportation                                                                       500
                        Petty cash fund                                                                           4,000
2009
Jan.   1   Petty cash fund                                                                  4,000
                        Receivable from employee                                                         2,000
                        Selling expenses                                                                           1,500
                        Transportation                                                                    500


                                                                                                          32
2009
Jan.  15   No entry

         31   Selling expenses                                                                   2,000
               Administrative expenses                                                       2,000
               Transportation                                                                      1,500
               Purchases                                                                             1,200
                        Cash in bank                                                                                 6,700

Requirement 2


Petty cash                                                                                                            10,000
Less:  Petty cash expenses from December 21, 2008 to January 31, 2009:
            Selling expenses (1,500 + 500)                                                  2,000
            Administrative expenses                                                          2,000   
            Transportation (500 + 1,000)                                                    1,500
            Purchases                                                                                1,200          6,700
Petty cash before replenishment                                                                           3,300

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