The custodian was not authorized to handle cash from payroll- or sales-related transactions. Determine the cash shortage/overage in the petty cash fund. Show solutions and explanations
LINO INC established a petty cash fund for USD12,000. Before it was replenished, the petty cash box has the following items
Bills and currencies 5, 400
Various employee checks in payment of IOUS 2, 350
An empty pay envelope labeled “salary of Employee Z” 1, 850
IOUS from employees 2, 100
Customer checks in payment of accounts with the company 4, 900
Unreplenished expense vouchers are:
Supplies (USD 360 remains unused as of year-end) 1, 500
Representation 750
Transportation 1, 000
The custodian was not authorized to handle cash from payroll- or sales-related transactions.
Determine the cash shortage/overage in the petty cash fund. Show solutions and explanations.
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