Lincoln Company accepted a check for $1,675 from a customer for a cash purchase of merchandise. The
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Lincoln Company accepted a check for $1,675 from a customer for a cash purchase of merchandise. The customer did not have sufficient funds to cover the check and the bank adjusted the company’s account for the amount of the returned check. What entry is required to record this NSF check? |
Debit | Credit | |
NSF Check Expense | 1,675 | |
Cash | 1,675 |
Sales Revenue | 1,675 | |
Cash | 1,675 |
Cash | 1,675 | |
Sales Revenue | 1,675 |
Accounts Receivable | 1,675 | |
Cash | 1,675 |
Bishop Company established a petty cash fund with $250 cash. Which of the following choices accurately reflects how this event would affect the company’s financial statements? |
Assets | = | Liab. | + | Equity | Rev. | − | Exp. | = | Net Inc. | Cash Flow | |||
a. | + − | n/a | n/a | n/a | n/a | n/a | n/a | ||||||
b. | + − | n/a | n/a | n/a | + | − | – OA | ||||||
c. | + − | n/a | n/a | n/a | n/a | n/a | – OA | ||||||
d. | − | n/a | − | n/a | + | − | – OA |
A
B
C
D
On September 1, Scott Company established a petty cash fund with $300 cash. A physical count of the petty cash fund on September 30 disclosed $49 in currency and coins. The petty cash vouchers are sorted as follows: |
Employee meals | $75.00 |
Postage | 95.00 |
Office supplies | 83.00 |
What is the amount of the petty cash fund replenishment on September 30? |
$253
$251
$300
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 978-0133852103
6th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
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