Ebony Corporation Uses a Voucher System and Completed the Following

question 38

Essay

Ebony Corporation uses a voucher system and completed the following transactions:
Dec. 31 Prepared voucher #301 to replenish the petty cash fund based on the following receipts:
supplies $52, postage $33, and cash over $5.
31 Issued check #1003 in payment of voucher #301.
Required: Prepare general journal entries to record the above transactions. Omit explanations.

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Definitions:

Income Before Taxes

The earnings of a business before income tax expense has been deducted.

Interest Expense

The financial charge an entity experiences for borrowing money over a specific period.

Quick (Acid Test) Ratio

A liquidity measure evaluating a company's ability to cover its short-term liabilities with its most liquid assets.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year.