Meng Co Maintains a $300 Petty Cash Fund

question 57

Multiple Choice

Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8.
-The journal entry to replenish the fund on January 31 is:

• A) Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Cr. Cash over and short, $8; Cr. Petty cash, $400.
• B) Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Dr. Cash over and short, $8; Cr. Petty cash, $268.
• C) Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Cr. Cash over and short, $8; Cr. Cash, $252.
• D) Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Dr. Cash over and short, $8; Cr. Cash, $268.
• E) Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Cr. Cash over and short, $8; Cr. Petty cash, $252.

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Definitions:

Growth Strategy

A plan of action designed to increase an organization’s market share, revenues, or scale of operations.

Product Development

The process of bringing a new product or service to market, including ideation, design, creation, and marketing stages.

Diversification Strategy

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.

Market Penetration

The extent to which a product or service is recognized and purchased by customers in a particular market.