1. Prepare journal entries to record the transactions. 2. How much is the petty cash on January31, 2020 before the replenishment?
On December 1, 2020, Wacky Company established an imprest petty cash fund.
2020
Dec 1 Established an imprest petty cash fund of 10,000 by writing a check on National Bank
Dec 20 Replenished the petty cash fund by writing a check on National Bank. The fund contained:
Currency and coins 1,000
Vouchers for selling expenses 5,000
Vouchers for miscellaneous expense 2,000
Vouchers for equipment 2,000
Dec. 31 The petty cash fund was not replenished. The fund contained:
Currency and coins 6,000
Postdated employee's check 2,000
Vouchers for selling expenses 1,500
Vouchers for transportation 500
2021
Jan 15. Encashed the employee's check. The proceeds were retained in the fund.
Jan 31. Replenished the petty cash fund by writing a check on National Bank. The petty cash vouchers for January expenditures are:
Distribution costs 500
Administrative expenses 2,000
Transportation 1,000
Payment for supplier's invoice 1,200
Required:
1. Prepare
2. How much is the petty cash on January31, 2020 before the replenishment?
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