Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. meng co. establishes a $250 petty cash fund on jan

Meng Co. establishes a $250 petty cash fund on January 1. On January 8, the...

70.2K

Verified Solution

Question

Accounting

Meng Co. establishes a $250 petty cash fund on January 1. On January 8, the fund shows $68 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; and miscellaneous expenses, $59. Meng uses the perpetual system in accounting for merchandise inventory. The journal entry to establish the fund on January 1 is:

a. debit Cash $250; credit Petty Cash $250.

b. debit Petty Cash $250; credit Petty Cash Payable $250.

c. debit Miscellaneous Expenses $250; credit Petty Cash $250.

d. debit Petty Cash for $250; credit Cash $250.

e. debit Petty Cash $250; credit Miscellaneous Expenses $250.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students