The definition of a datum is a fact used to make a conclusion or a point of reference in geography or geology. An example of a datum is a new scientific discovery used to reach a conclusion about the common cold.
How do you estimate minimum cash balance for the company? 2 ways I heard about are: 1) keep it equal to cash balance on B/S and 2) based on Net Working Capital. Is any of those methods preferred? Is there any other school of calculation that? And, if NWC method, then what exactly do you include in calculation (like include or excl.
Instructions. Write the journal entry when the petty cash fund is established. Assume that the local bookstore determined that $100 cash should be kept on hand for miscellaneous expenses. A two-line journal entry should be recorded for this transaction: Line 1: Petty Cash: Debit: 100.00; Line 2: Cash: Credit: 100.00; As the entry indicates, no funds have been spent on miscellaneous expenses thus far. Record the journal entry for miscellaneous expenses and replenish the petty cash fund. Assume, reusing the example in Step 1, the bookstore spent $25 on gas, $12.50 on office supplies, $28 on meals and $11.50 on postage.