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Present Entries to Record the Following Transactions

question 110

Essay

Present entries to record the following transactions:
(a)Established a petty cash fund of $235.
(b)The petty cash fund now has a balance of $42.80. Replenished the fund, based on the following disbursements as indicated by a summary of the petty cash receipts: office supplies, $74.50; miscellaneous administrative expense, $92.75; and miscellaneous selling expense, $18.60.
(c)Increased the petty cash fund to $300.


Definitions:

Equity Financing

A method of raising capital through the sale of shares in a company, providing investors ownership interests.

Debt Financing

The method of raising capital through the sale of bonds, notes, or loans, which must be repaid along with interest.

Marginal Cost

The cost of producing one additional unit of a product or service.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes a company's overall cost of capital while maximizing its stock price.

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