Capital Irrigation has only a general journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash transactions were noted by the petty cashier as occurring during April 2017: Apr. 1 Received a company cheque for $300 to establish the petty cash fund. 15 Received a company cheque to replenish the fund for the following expenditures made since april 1 and to increase the fund to $400. a. Paid $82 for janitorial service. b. Purchased office supplies for $78.15. c. Purchased postage stamps for $25.00. d. Paid $92.50 to the County Crier for an advertisement in the newspaper. e. Discovered that $24.35 remained in the petty cash box. 30 The petty cashier noted that $244.95 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was issued to replenish the fund for the following expenditures made since April 15 and to reduce the fund to $350. f. Purchased office supplies for $94.65. g. Reimbursed office manager for business auto. $45.60. h. Paid $14.80 courier charges to deliver merchandise to a customer. Required: Prepare journal entries to record the establishment of the fund on April 1 and its replenishments on April 15 and April 30.
Problem 1:
Capital Irrigation has only a general journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash transactions were noted by the petty cashier as occurring during April 2017:
Apr. 1 Received a company cheque for $300 to establish the petty cash fund.
15 Received a company cheque to replenish the fund for the following expenditures made since april 1 and to increase the fund to $400.
a. Paid $82 for janitorial service.
b. Purchased office supplies for $78.15.
c. Purchased postage stamps for $25.00.
d. Paid $92.50 to the County Crier for an advertisement in the newspaper.
e. Discovered that $24.35 remained in the petty cash box.
30 The petty cashier noted that $244.95 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was issued to replenish the fund for the following expenditures made since April 15 and to reduce the fund to $350.
f. Purchased office supplies for $94.65.
g. Reimbursed office manager for business auto. $45.60.
h. Paid $14.80 courier charges to deliver merchandise to a customer.
Required:
Prepare
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