Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is the correct journal entry to record the reimbursement of the petty cash fund when expenses have been incurred and paid from petty cash?

Debit various expense accounts and credit Cash

Debit various expense accounts and credit Petty Cash

Debit Petty Cash and credit various expense accounts

Debit Cash and credit Petty Cash

Previous problemNext problem

Verified step by step guidance

Understand the concept of petty cash: Petty cash is a small amount of cash kept on hand to cover minor expenses. When petty cash is used to pay for expenses, the reimbursement process involves recording the expenses and replenishing the petty cash fund.

Analyze the reimbursement process: When petty cash is reimbursed, the expenses paid from petty cash are recorded in the appropriate expense accounts, and the cash used to replenish the fund is credited to the Cash account (not the Petty Cash account). This ensures the petty cash fund remains at its original balance.

Determine the correct accounts to debit: Identify the various expense accounts that correspond to the expenses incurred (e.g., Office Supplies, Travel Expenses, etc.). These accounts should be debited to reflect the expenses paid.

Determine the correct account to credit: The Cash account should be credited because the reimbursement involves withdrawing cash from the company's bank account to replenish the petty cash fund.

Review the journal entry format: The correct journal entry to record the reimbursement of the petty cash fund is: Debit various expense accounts (e.g., Office Supplies, Travel Expenses) and Credit Cash. This entry ensures the expenses are properly recorded and the petty cash fund is replenished.