Question

Last week The internet service at Salina's cafe went out. She ordered an emergency hot spot from ConnektNOW so her customers could use the internet for the week. The cost was the same amount each day. On the day the payment was due to ConnektNow, Salina was out of the cafe, so her shift Manger paid the bill from a petty cash bin that had $1,000 in it. If there was $542.62 in the petty cash bin when Salina returned, how much was the daily cost for the emergency hot spot from ConnektNOW?

Answer 1

The current balance in Petty Cash is $1,000. To increase it to $1,200 you need to debit Petty Cash for the additional $200 and credit Cash for $200.

Answer 2

$65.34/day

Explanation:

1. We first need to find out how much money was spent in total and to do this we subtract the total amount from the leftover amount:

$1,000 - $542.62 = $457.38

2. To find out the daily cost we simply divide it by the number of days which is 7 in this case, because 1 week = 7 days.

$457.38 ÷ 7 = $65.34