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Exercise 6-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $89 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $25. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $230. Hint Make two entries. No 1 2 3 4 Date January 01 January 08 January 08 January 08 Petty cash Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Petty cash i Cash Answer is not complete. General Journal ●● 100000 100000 00 Debit 180 360 140 160 250 20 360 140 16 250 20 50- Credit 180 91 0 91 50

Exercise 6-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $89 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $25. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $230. Hint Make two entries. No 1 2 3 4 Date January 01 January 08 January 08 January 08 Petty cash Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Petty cash i Cash Answer is not complete. General Journal ●● 100000 100000 00 Debit 180 360 140 160 250 20 360 140 16 250 20 50- Credit 180 91 0 91 50

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 6-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $89 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $25. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $230. Hint Make two entries. No 1 2 3 4 Date January 01 January 08 January 08 January 08 Petty cash Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Petty cash Cash Answer is not complete. General Journal 00 000000 100000 00 Debit 180 36 14 16 25 20 36 14 16 25 28 50 Credit 180 91 X 91 50 Ⓡ
Transcribed Image Text:Exercise 6-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $89 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $25. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $230. Hint Make two entries. No 1 2 3 4 Date January 01 January 08 January 08 January 08 Petty cash Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Postage expense Transportation-in Delivery expense Miscellaneous expenses Cash short and over Cash Petty cash Cash Answer is not complete. General Journal 00 000000 100000 00 Debit 180 36 14 16 25 20 36 14 16 25 28 50 Credit 180 91 X 91 50 Ⓡ
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