**Title: Understanding Transactions for Petty Cash, Cash Short, and Over****Educational Insight: Cactus Restoration Company Transactions – May 2016**This example illustrates how the Cactus Restoration Company managed its petty cash and tracked cash short and over transactions during May 2016. Let's explore the detailed transactions and their implications:1. **October 1: Establishment of Petty Cash Fund** - A petty cash fund of $750 was established. This serves as a small cash reserve for minor and frequent expenses within the company, allowing for efficient handling of day-to-day transactional needs without affecting the main cash accounts.2. **October 12: Cash Sales and Cash Handling** - According to the cash register records, the total cash sales for the day amounted to $12,440. However, the actual cash received was slightly higher, at $12,465. This discrepancy indicates an overage of $25, suggesting that there might have been an oversight or extra cash received beyond the recorded sales.3. **October 31: Replenishment of Petty Cash Fund** - At the end of the month, the petty cash on hand was $157. The petty cash fund was replenished to ensure it returned to its initial balance, accounting for any disbursements made throughout the month. Each replenishment is supported by petty cash receipts, ensuring transparency and accuracy in financial tracking.Understanding these transactions helps highlight the importance of maintaining accurate financial records and the methods used to manage discrepancies in cash transactions.

Petty cash: Petty cash fund is eastiblished to pay insignifinant amount small expenses like office…

Cactus Restoration Company completed the following selected transactions during May 2016: Oct. 1. Established a petty cash fund of $750. 12. The cash sales for the day, according to the cash register records, totaled $12,440 The actual cash received from cash sales was $12,465. 31. Petty cash on hand was $157. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:

Cactus Restoration Company completed the following selected transactions during May 2016: Oct. 1. Established a petty cash fund of $750. 12. The cash sales for the day, according to the cash register records, totaled $12,440 The actual cash received from cash sales was $12,465. 31. Petty cash on hand was $157. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume that the custodian of a $450 petty cash fund has $57.10 in coins and curency plus $387.00 in recipts at the end of the month. The entry to replenish the petty cash fund will include:?
Swifty Company established a petty cash fund on May 1, cashing a check for $125.00. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $5.55. Receipts: delivery expense $30.80, postage expense $37.75, and miscellaneous expense $50.90. July 1: Cash in fund $3.00. Receipts: delivery expense $19.95, entertainment expense $47.05, and miscellaneous expense $55.00. On July 10, Swifty increased the fund from $125.00 to $155.Prepare journal entries for Swifty Company for May 1, June 1, July 1, and July 10. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date May 1June 1July 1July 10 enter an account title enter a debit amount…
The custodian of a $600 petty cash fund discovers that the fund has $ 112.50 in coins and currency plus $ 472.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:
T. L. Jones Trucking Services establishes a petty cash fund on April 3 for $200. By the end of April, the fund has a cash balance of $97. The company has also issued a credit card and authorized its office manager to make purchases. Expenditures for the month include the following items: Utilities (credit card) Entertainment (petty cash) Stamps (petty cash) Plumbing repair services (credit card) $ 435 44 59 630 Required: Record the establishment of the petty cash fund on April 3, all expenditures made during the month, and the replenishment of the petty cash fund on April 30. The credit card balance is paid in full on April 30. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
On September 1, French company has decided to initiate a petty cash fund in the amount of $850. A. On September 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $37, Supplies $120, Postage Expense $260, Repairs and Maintenance Expense $168, Miscellaneous Expense $149. The cash on hand at this time was $111. B. On September 14, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $19, Supplies $170, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $230. C. On September 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $90, Postage Expense $63, Repairs and Maintenance Expense $182, Miscellaneous Expense $251. The cash on hand at this time was $20. D. On September 29, the company determined that the petty cash fund needed to be increased to $1,000. E. On September 30, the petty…
Man
Wyoming Restoration Company completed the following selected transactions during July 20Y1: July 1. 12. 31. July 3. 7. 9. 13. 19. 21. 22. 24. 30. July 31. 31. Established a petty cash fund of $1,100. The cash sales for the day, according to the cash register records, totaled $8,192. The actual cash received from cash sales was $8,220. Petty cash on hand was $47. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: Store supplies, $580. Express charges on merchandise sold, $90 (Delivery Expense). Office supplies, $30. Office supplies, $35. Postage stamps, $50 (Office Supplies). Repair to office file cabinet lock, $60 (Miscellaneous Administrative Expense). Postage due on special delivery letter, $28 (Miscellaneous Administrative Expense). Express charges on merchandise sold, $135 (Delivery Expense). Office supplies, $25. The cash sales for the day, according to the cash register records, totaled $10,241. The actual cash received from…
Meng Company maintains a $355 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $91 for office supplies, $182 for merchandise inventory, and $31 for miscellaneous expenses. There is a cash shortage of $11. The journal entry to replenish the fund on January 31 is:
Jeremiah Restoration Company completed the following selected transactions during January: Jan. 1. Established a petty cash fund of $730. 12. The cash sales for the day, according to the cash register records, totaled $12,146. The actual cash received from cash sales was $12,171. 31. Petty cash on hand was $133. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt: Jan. 3. Store supplies, $392. 7. Express charges on merchandise sold, $31 (Delivery Expense). 9. Office supplies, $19. 13. Office supplies, $20. 19. Postage stamps, $14 (Office Supplies). 21. Repair to office file cabinet lock, $13 (Miscellaneous Administrative Expense). 22. Postage due on special delivery letter, $30 (Miscellaneous Administrative Expense). 24. Express charges on merchandise sold, $51 (Delivery Expense). 30. Office supplies, $7. Jan. 31. The cash sales for the day, according to the cash register records, totaled…
25
The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Present entries to record the transactions for each of the two days of cash receipts from sales. a. Actual cash in cash register, $4,149; cash receipts per cash register tally, $4,178. b. Actual cash in cash register, $3,573; cash receipts per cash register tally, $3,461. If an amount box does not require an entry, leave it blank. a. b.