Asked by mallika persaud on May 14, 2024
Verified
Ebony Corporation uses a voucher system and completed the following transactions:
Dec. 31 Prepared voucher #301 to replenish the petty cash fund based on the following receipts:
supplies $52, postage $33, and cash over $5.
31 Issued check #1003 in payment of voucher #301.
Required: Prepare general journal entries to record the above transactions. Omit explanations.
Petty Cash Fund
A small amount of cash kept on hand for minor or incidental expenses.
Voucher System
A control mechanism in accounting that involves authorization and documentation before a financial transaction is made.
General Journal Entries
Basic accounting records where all day-to-day financial transactions of a business are initially recorded, before being transferred to specific accounts in the general ledger.
- Accurately log transactions through the voucher system within both the periodic inventory system and the gross method framework.
- Internalize the accounting handling for cash discounts under the dual approach of net and gross methods in the voucher system.
Verified Answer
DL
Learning Objectives
- Accurately log transactions through the voucher system within both the periodic inventory system and the gross method framework.
- Internalize the accounting handling for cash discounts under the dual approach of net and gross methods in the voucher system.