1. Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:

December 4	Freight charge for merchandise purchased	$	43
December 7	Delivery charge for shipping to customer	$	67
December 12	Purchase of office supplies	$	32
December 18	Donation to charitable organization	$	51

If, in addition to these receipts, the petty cash fund contains $296.75 of cash, the journal entry to reimburse the fund on December 31 will include:

Multiple Choice

• A credit to Cash of $203.25.

• A debit to Petty Cash of $75.

• A debit to Transportation-In of $75.

• A credit to Cash Over and Short of $10.25.

• A credit to Office Supplies of $67.

2. Assume that the custodian of a $645 petty cash fund has $127.50 in coins and currency plus $499.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

Multiple Choice

• A credit to Cash for $499.50.

• A debit to Cash for $482.

• A credit to Cash Over and Short for $518.

• A debit to Cash Over and Short for $18.00.

• A debit to Petty Cash for $499.50.

3. The following information is available for Fenton Manufacturing Company at June 30:

Cash in bank account	$	7,055
Inventory of postage stamps	$	80
Money market fund balance	$	13,000
Petty cash balance	$	410
NSF checks from customers returned by bank	$	927
Postdated checks received from customers	$	541
Money orders	$	857
A nine-month certificate of deposit maturing on December 31 of current year	$	8,600

Based on this information, Fenton Manufacturing Company should report Cash and Cash Equivalents on June 30 of:

Multiple Choice

• $20,465

• $21,472

• $21,392

• $21,322