Havermill Co. establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $85 for Office Supplies, $161 for merchandise Inventory, and $34 for miscellaneous expenses. The fund has a balance of $90. On October 1, the accountant determines that the fund should be increased by $74. The journal entry to record the establishment of the fund on September 1 is: Multiple Choice О Debit Petty Cash $370; credit Accounts Payable $370. O Debit Miscellaneous Expense $370; credit Cash $370. O Debit Petty Cash $370; credit Cash $370. Debit Cash $370; credit Petty Cash $370. О Debit Cash $370; credit Accounts Payable $370.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1PA: On September 1, French company has decided to initiate a petty cash fund in the amount of $800....
Question
Havermill Co. establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that
date represent $85 for Office Supplies, $161 for merchandise Inventory, and $34 for miscellaneous expenses. The fund has a balance of $90. On
October 1, the accountant determines that the fund should be increased by $74. The journal entry to record the establishment of the fund on
September 1 is:
Multiple Choice
О
Debit Petty Cash $370; credit Accounts Payable $370.
O
Debit Miscellaneous Expense $370; credit Cash $370.
O
Debit Petty Cash $370; credit Cash $370.
Debit Cash $370; credit Petty Cash $370.
О
Debit Cash $370; credit Accounts Payable $370.
Transcribed Image Text:Havermill Co. establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $85 for Office Supplies, $161 for merchandise Inventory, and $34 for miscellaneous expenses. The fund has a balance of $90. On October 1, the accountant determines that the fund should be increased by $74. The journal entry to record the establishment of the fund on September 1 is: Multiple Choice О Debit Petty Cash $370; credit Accounts Payable $370. O Debit Miscellaneous Expense $370; credit Cash $370. O Debit Petty Cash $370; credit Cash $370. Debit Cash $370; credit Petty Cash $370. О Debit Cash $370; credit Accounts Payable $370.
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