1101AFE Accounting Principles

1101AFE
Accounting Principles – Semester 1 2016
Assessable
Homework Chapters 8 & 9
QUESTION 1.
Pacific Press maintains an imprest
petty cash fund of $400, which is under the control of Brenda Montague. At 30 November, the fund holds $215 cash and
petty cash vouchers for travel expenses, $80; office supplies, $60; and
delivery expense, $40.
Required: Prepare the general journal
entries to record:

(a)
the establishment of the petty cash fund on 1November
(b)
the replenishment of the fund on 30 November.
Ignore GST.
(c)
On the 1st of December it was decided to decrease the Petty Cash
fund to $300.

Explanations
(Narrations) are NOT required.

DATE

ACCOUNTS
AND EXPLANATIONS

DEBIT

CREDIT

Question
2.
On 31st August, ABC Ltd
had a $155,000 debit balance in Accounts Receivable and a $ $6,200 credit
balance in Allowance for doubtful debts.
During September ABC Ltd mad:
a. Sales
on Credit, $590,000
b.
Collections
on account, $627,000
c.
Write
off of bad debts , $7,000.

Record sales and collections on
account. Then record the adjustment for
bad debt expense (3% of credit sales) and the write-off of customer accounts
for September using the allowance method.

DATE

ACCOUNTS
AND EXPLANATIONS

DEBIT

CREDIT