1. On April 2020, Grapes Company established an imprest petty cash fund for P20,000 by writing a...
Question:
1. On April 2020, Grapes Company established an imprest petty cash fund for P20,000 by writing a check drawn against its general checking account. On April 23, the fund contained the following: Currency and coins- P8,000; Receipts for office supplies- P6,000; Receipts for postage (still unused)- P4,000; Receipts for transportation- P1,200. On April 24, the company wrote a check to replenish the fund.
What is the amount of replenishment under the imprest fund system?
A. P20,000
B. P14,000
C. P12,000
D. P6,000
2. . A P100 petty cash fund contains P91 in petty cash receipts, P4.75 in currency and coins.
The journal entry to record the replenishment of the found would include
A. credit Petty cash for P95.75
B. credit Cash for P90
C. debit Cash short or over for P4.25
D. credit Cash short or over for P4.25
3. Lemon Co. uses a four-column bank reconciliation. The bank statement reports May payments of P13,150, including service charges of P200. At the beginning of May, there were P900 of checks outstanding. At the end of May, there were P1,200 of checks outstanding.
Before recording the bank service charges, Lemon must have recorded May payments of:
A. P13,250
B. P12,650
C. P13,050
D. P13,650
Intermediate Accounting
ISBN: 9780324013078
14th Edition
Authors: Fred Skousen, James Stice, Earl Kay Stice