Accounting Help

JDawg1536

Golden Member
Apr 27, 2006
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How much do you need to increase the petty cash fund to $200 on Oct 31? Should be pretty easy, but the program keeps spitting it back.

The cash line is always the credit.
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During October, Eastern Light Company experiences the following transactions in establishing a petty cash fund.

Oct. 1 A petty cash fund is established with a check for $100 issued to the petty cash custodian.
Oct. 31 A count of the petty cash fund disclosed the following items:
Currency $7.00
Coins 0.40
Expenditures receipts (vouchers):
Office supplies $26.10
Telephone, Internet, and fax 16.40
Postage 42.00
Freight-out 6.80
Oct. 31 A check was written to reimburse the fund and increase the fund to $200.

Journalize the entries in October that pertain to the petty cash fund. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Round all numbers to 2 decimal places, e.g. 12.25.)

Date Account/Description Debit Credit
Oct. 1 Petty cash 100
Cash 100
(To establish the petty cash account)

Oct. 31 Postage expense 42
Office supplies 26.10
Miscellaneous expense 16.40
Freight-out 6.80
Cash over and short 1.30
Cash 92.60
(To reimburse the petty cash fund.)

Oct. 31 Petty cash ??????
Cash ??????
(To increase the petty cash fund.)
 

JDawg1536

Golden Member
Apr 27, 2006
1,275
0
76
do your own homework man

That's like you asking me for help giving your wife an orgasm and me saying "Do your own wife, man." If you can't do it, you can't do it. You aren't gonna get any better at something by doing it the wrong way.
 

SandEagle

Lifer
Aug 4, 2007
16,809
13
0
That's like you asking me for help giving your wife an orgasm and me saying "Do your own wife, man." If you can't do it, you can't do it. You aren't gonna get any better at something by doing it the wrong way.

quoted for idiocy. in your example, the problem would lie with the wife. so you are saying that the homework is the problem? yeah, sure, uh huh, whatever, buddy. if you can't try, at least try to try. do it the wrong way until you learn from your mistakes and get it right.

are you an art major by chance? if so, the answer is.........







......yes, i'd like fries with that.
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
Why are you crediting the cash account in the first Oct 31 entry?

The second Oct 31 entry would debit petty cash to get it up to 200.
 

JDawg1536

Golden Member
Apr 27, 2006
1,275
0
76
Why are you crediting the cash account in the first Oct 31 entry?

The second Oct 31 entry would debit petty cash to get it up to 200.

To reimburse the fund for the $92.60 spent. The answer should be $100 for the final entry, correct? I know all the other entries are correct, but it's saying $100 is incorrect.
 

BoomerD

No Lifer
Feb 26, 2006
66,279
14,699
146
READ THE FUCKING TEXTBOOK


(Or pay attention to the link I posted above)
 

JDawg1536

Golden Member
Apr 27, 2006
1,275
0
76
quoted for idiocy. in your example, the problem would lie with the wife. so you are saying that the homework is the problem? yeah, sure, uh huh, whatever, buddy. if you can't try, at least try to try. do it the wrong way until you learn from your mistakes and get it right.

are you an art major by chance? if so, the answer is.........

Yeah, I'm an art major taking accounting..... right.

What does someone do if they keep trying and keep failing? Pray for the answer? If you can't get it, then someone tells you, you just might be able to figure out why you were making a mistake and learn from it. Especially so in this case. If you're gonna be a douche, don't bother posting.
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
To reimburse the fund for the $92.60 spent. The answer should be $100 for the final entry, correct? I know all the other entries are correct, but it's saying $100 is incorrect.

You don't reimburse the fund until the second Oct 31 entry. You're debiting expense accounts and crediting the petty cash account since at Oct 31 it only had $7.40 in it. It started at $100, the cash had to come from somewhere, right?

I would debit the expense accounts like you did and credit petty cash, then in the other entry debit petty cash and credit cash with an amount to get it up to $200.
 

thegimp03

Diamond Member
Jul 5, 2004
7,420
2
81
You already made the entry to replenish the account back up to 100. To increase it again, you need to make the same entry as you did to establish it to begin with.

Dr. Petty cash...100
Cr. Cash...100
 

BoomerD

No Lifer
Feb 26, 2006
66,279
14,699
146
You don't reimburse the fund until the second Oct 31 entry. You're debiting expense accounts and crediting the petty cash account since at Oct 31 it only had $7.40 in it. It started at $100, the cash had to come from somewhere, right?

I would debit the expense accounts like you did and credit petty cash, then in the other entry debit petty cash and credit cash with an amount to get it up to $200.

Ummm...

Date Account/Description Debit Credit
Oct. 1 Petty cash 100
Cash 100
(To establish the petty cash account)

(crappy formatting, but that's ATOT)
 

JDawg1536

Golden Member
Apr 27, 2006
1,275
0
76
You don't reimburse the fund until the second Oct 31 entry. You're debiting expense accounts and crediting the petty cash account since at Oct 31 it only had $7.40 in it. It started at $100, the cash had to come from somewhere, right?

I would debit the expense accounts like you did and credit petty cash, then in the other entry debit petty cash and credit cash with an amount to get it up to $200.

You're supposed to be writing a check to reimburse petty cash to $100 on the first entry, then a second entry to increase the funds to $200. That's pretty poor wording in the directions. Either way the answer should be $100 or $192.60, and it says both are incorrect.
 

JDawg1536

Golden Member
Apr 27, 2006
1,275
0
76
You already made the entry to replenish the account back up to 100. To increase it again, you need to make the same entry as you did to establish it to begin with.

Dr. Petty cash...100
Cr. Cash...100

Thank you. Is that the consensus, because that's what I got and that's what I entered and was told is incorrect?
 

BoomerD

No Lifer
Feb 26, 2006
66,279
14,699
146
What's wrong? Am I missing something?

Maybe I misunderstood your post.

You don't reimburse the fund until the second Oct 31 entry. You're debiting expense accounts and crediting the petty cash account since at Oct 31 it only had $7.40 in it. It started at $100, the cash had to come from somewhere, right?

The cash came from his initial post...

You don't actually credit the petty cash account.

There would be debits to the individual expense accounts...and a credit to cash for the check written to cover the expenses...with a notation "to reimburse the petty cash account."

When he increases the petty cash, THEN there is a debit to Petty Cash and a credit to Cash
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
You don't actually credit the petty cash account.

There would be debits to the individual expense accounts...and a credit to cash for the check written to cover the expenses...with a notation "to reimburse the petty cash account."

When he increases the petty cash, THEN there is a debit to Petty Cash and a credit to Cash

My bad! Here in public we deal with petty cash transactions, umm... never.

Carry on.
 

thegimp03

Diamond Member
Jul 5, 2004
7,420
2
81
My bad! Here in public we deal with petty cash transactions, umm... never.

Carry on.

Agreed. I never saw a petty cash transaction once when I was an auditor or in CPA tests. Example is probably from the 1950s when the book was first written or something. I feel stupid because I had to think back to my introduction to accounting classes...
 

SandEagle

Lifer
Aug 4, 2007
16,809
13
0
Maybe I misunderstood your post.



The cash came from his initial post...

You don't actually credit the petty cash account.

There would be debits to the individual expense accounts...and a credit to cash for the check written to cover the expenses...with a notation "to reimburse the petty cash account."

When he increases the petty cash, THEN there is a debit to Petty Cash and a credit to Cash

who are you and what did you do with Boomer?! you actually sound like you know what you're talking about! o_O