Omar Co. maintains a monthly petty cash fund of 1,800 SAR. In September 2017, there are several withdrawing from the petty cash as follows:
Travel expenses 410
Mail postage 324.80
Office supplies 270
Petrol supplies 365.50
Customer business lunches 193
The balance of petty cash in 30th of September 2017 was 232.70
How much cash is required to replenish the petty cash fund?
Journalize the replenish petty cash fund?
11th of November 2017, a customer bought with a bank credit card from Abdullah Co. the sales were 1,700 and the bank charges 3% as processing fee. The payment is received on November 24th.
On 3rd of April 2017, ABC Co. purchased a scanner for 7,000 from Omar Co. ABC gave Omar a 12% note due in 70 days in payment for the scanner.
What is the maturity date of the note?
When is the due date of the note?
How much interest on this note?
Journalize the note and the payment?
Journalize the note if it is unpaid?
:
Balance after expenses at the end of September 232.70
Less: Monthly required balnce at the end 1800
Cash required for replenish petty cash 1567.30
Journal
Petty Cash A/c Dr 1567.30
to Cash A/c 1567.3
(Being amount transferred from cash to petty cash for maintaining minimum balance)
(2) Sales 1700
+ Processing Charges 51 (1700*3%)
Payment received 1751
(3) Maturity date of note = 3rd April 2017 + 70 Days = 12th June, 2017
Due date of Note = 12th June 2017
Interest = 7000*12%*70/365 = $161
(a) Scanner a/c dr 7000
to note payable 7000
(b) Note Payable 7000
Interest exp 161
to Bank 7161
note if it is unpaid
Interest exp 161
to Interest payable 161
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