On October 1, 2015, Ellington Company establishes an imprest petty cash fund by
issuing a check for $200 to Erin Angelo, the custodian of the petty cash fund. On
October 31, 2015, Erin Angelo submitted the following paid petty cash receipts for
replenishment of the petty cash fund when there is $32 cash in the fund:
Freight-In $28
Supplies Expense 42
Entertainment of Clients 65
Postage Expense 30
Instructions
Prepare the journal entries required to establish the petty cash fund on October 1 and
the replenishment of the fund on October 31.
Answer:
In general, how does one determine whether or not an expenditure should be included
in the acquisition cost of property, plant, and equipment?
Answer:
Place each of the items listed below in the appropriate subdivision of the stockholders’
equity section of a balance sheet.
Common stock, $10 stated value
Retained earnings
8% Preferred stock, $100 par value
Paid-in capital in excess of par
Paid-in capital in excess of stated value
Treasury stock’”Common
Paid-in capital from treasury stock
Answer:
Corporations purchase investments in debt or stock securities generally for one of two
reasons.
Answer:
Inventory is reported as a long-term asset on the balance sheet.
Answer:
Dividends in arrears on cumulative preferred stock are considered a liability.
Answer: