The accounting system used by Dartmouth Sales and Service requires that all entries be journalized in a

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The accounting system used by Dartmouth Sales and Service requires that all entries be journalized in a general journal. To facilitate payments for small items, Dartmouth established a petty cash fund. The following transactions involving the petty cash fund occurred during February 2020.

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Required

Prepare general journal entries to record the establishment of the fund on February 3 and its replenishment on February 14 and February 28.

Analysis Component: Explain how the company?s financial statements would be affected if the petty cash fund is not replenished and no entry is made on February 28. (Hint: The amount of Office Supplies that appears on a balance sheet is determined by a physical count of the supplies on hand.)

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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