Entries are made to the Petty Cash account when replenishing the petty cash fund

Question

Entries are made to the Petty Cash account when replenishing the petty cash fund, making payments out of the fund, recording shortages in the fund establishing the fund. Alma Corp, issues 1,000 shares of $10 per value common stock at $16 per share, When the transaction is recorded, credits are made to: Common Stock $16.000. Common Stocks $10,000 and Paid-in Capital in Excess of Stated Values $6,000. Common Stock $ 10.000 and Retained earnings $6,000 Common Stock $10,000 and Paid-in Capital in Excess of Par Value $6,000. What is the type of account and normal balance of Allowance for Doubtful Accounts Asset, debit Asset, credit Contra asset, credit Contra asset, debit The debit side of an account is the right side of the account depends on whether the account is an asset, liability or stockholders' equity item is the left side of the account can be either side of the account depending on how the accountant set up the system A business borrowed $40,000 on March 1 of the current sear by signing a 30-day, 9% interest bearing note. When the note is paid on March 31, the entry to record the payment should include a credit to Cash for $40,000 debit to Interest Expense $300 credit to Cash for $43,600 debit to interest Payable $300 Most employers are required to withhold from employees which of the following employment taxes only federal unemployment compensation tax only state unemployment compensation tax FICA tax, state and federal unemployment compensation tax FICA tax On June 8. Alton Co. issued an $90,000. 6%. 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note $91.800 $90.000 $95,400 $90,450

Explanation / Answer

21)

Entries are made in petty cash account when payments are made out of the fund.

So, option b is the correct solution.

22)

When shares are issued at above their face value or par value, Common stock is credited by $ 10,000 and Share premium account which is a part of retained earnings is credited by $ 6,000

So, option c is the correct option

23)

Allowance for doubtful accounts is a Contra asset generally having a credit balance. So, option c is the correct solution

24)

The debit side of an account is the left side of the account.

So, option c is the correct solution.

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