Exercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 Fresh Foods established a petty cash fund of $94 on January 2. On January 31, the fund contained cash of $9.40 and vouchers for the following cash payments: Maintenance expense Office supplies Transportation expense $28.20 37.60 18.80 The four distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses including any amount of cash short or over and (4) replenishment of the fund Assume the Company uses the alternative approach to petty cash expense recognition and replenishment Required Show each of the four events in the following horizontal statements model (Enter any decreases to account balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA). financing activity (FA), or leave the cell blank if there is no effect. Round your answers to 2 decimal places.) FRESH FOODS Horizontal Statements Model

Exercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 Fresh Foods established a petty cash fund of $94 on January 2. On January 31, the fund contained cash of $9.40 and vouchers for the following cash payments: Maintenance expense Office supplies Transportation expense $28.20 37.60 18.80 The four distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses including any amount of cash short or over and (4) replenishment of the fund Assume the Company uses the alternative approach to petty cash expense recognition and replenishment Required Show each of the four events in the following horizontal statements model (Enter any decreases to account balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA). financing activity (FA), or leave the cell blank if there is no effect. Round your answers to 2 decimal places.) FRESH FOODS Horizontal Statements Model

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

View Policies Current Attempt in Progress Blue Spruce Company established a $110 petty cash fund on August 1. On August 31, the fund had $9 cash remaining and petty cash receipts for postage $41, office supplies $24, and miscellaneous expense $34. Prepare journal entries to establish the fund on August 1 and replenish the fund on August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation e Textbook and Media Debit Credit
L Recording Petty Cash Account Transactions During March, Drapeau Company engaged in the following transactions involving its petty cash fund: a. On March 1, Drapeau Company established the petty cash fund by issuing a cheque for $1,500 to the fund custodian. b. On March 4, the custodian paid $103 out of petty cash for freight charges on new equipment. This amount is properly classified as equipment. c. On March 12, the custodian paid $140 out of petty cash for supplies. Drapeau expenses supplies purchases as supplies expense. d. On March 22, the custodian paid $28 out of petty cash for express mail services for reports sent to Environment Canada. This is considered a miscellaneous expense. e. On March 25, the custodian filed a claim for reimbursement of petty cash expenditures during the month totalling $271. f. On March 31, Drapeau Issued a cheque for $271 to the custodian, replenishing the fund for expenditures during the month. Required: Prepare the journal entries required to…
A B C D E G H 1 Wyoming Restoration Company completed the following selected transactions during July 2021: 2 3 4 5 6 7 8 9 10 7/21/21 11 7/21/21 12 7/22/21 13 e. A check 14 7/30/21 15 16 17 Prepare all journal entries associated with the petty cash account. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 7/1/21 Established a petty cash fund. Receipts for the following: Store supplies 7/3/21 7/7/21 7/9/21 Delivery charges on merchandise sold Office supplies 7/13/21 Office supplies 7/19/21 Postage stamps Repair to fax machine Repair to office file cabinet lock Postage due on special delivery letter Delivery charges on merchandise sold Office supplies 7/31/21 Petty cash on hand 7/1/21 Petty Cash Cash 7/31/21 Delivery Expense $ 1,030 $ 247 Office Supplies Expense $ 184 Store Supplies Expense $ 113 Misc Office Expense $ 278 $ 143 $ 15 Postage Expense Cash Over & Short Cash $ 1,030 $ GA 980 $ $ GA GA GA GA GA GA GA GA GA GA GA $ $ $ $ $ $ $ $ $ F 1,030 113 165 72 82 87 206 72 56 82 30 50 I…
GL0601 (Algo) - Based on Problem 6-2A LO P2 Carter Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May. May 1 Prepared a company check for $500 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. May 15 a. Paid $177 for janitorial services. May 15 b. Paid $133 for miscellaneous expenses. May 15 c. Paid postage expenses of $89. May 15 d. Paid $44 to Facebook for advertising expense. May 15 e. Counted $65 remaining in the petty cash box. May 16 Prepared a company check for $200 to increase the fund to $700. May 31 The petty cashier reports that $280 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. May 31 f. Paid postage expenses of $246. May 31 g. Reimbursed the office manager for business mileage, $123. May 31 h. Paid $41 to deliver merchandise to…
None
Required information Problem 6-4A (Algo) Preparing a bank reconciliation and recording entries LO P3 [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,640 debit balance, but its July bank statement shows a $28,276 cash balance. b. Check Number 3031 for $1,620, Check Number 3065 for $586, and Check Number 3069 for $2,388 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,230 but was erroneously entered in the accounting records as $1,220. d. The July bank statement shows the bank collected $7,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet…
Question Content Area Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $12,480. The bank statement indicated a balance of $14,430 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $5,190. A deposit of $5,410, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $2,810 on a $2,670 note, including interest of $140. A check for $550 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $500. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $60 had been erroneously charged by the bank as $600. Bank service charges for April amounted to $50.
Exercise 6-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $160 petty cash fund on January 1. On January 8, the fund shows $71 in cash along with receipts for the following expenditures: postage, $36; transportation-in, $13; delivery expenses, $15; 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 $210. Hint. Make two entries.
EX 8-24 Petty cash fund entries OBJ. 6 Journalize the entries to record the following: Check is issued to establish a petty cash fund of $1,290. b. The amount of cash in the petty cash fund is now $303. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $427; miscellaneous selling expense, $365; miscellaneous administrative expense, $165. If the amount of the check to replenish the fund plus the balance in the fund do not equal $1,290, record the discrepancy in the cash short and over account.
7. Journalize the entries to record the following: established a petty cash fund of $350 The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following receipts: office supplies, 116; Sep 1 Sep 30 postage $100. Record any discrepancy in the cash short and over account. D Focus
Bank Reconciliation and Entries The cash account for Collegiate Sports Co. on November 1, 20Y9, indicated a balance of $12,710. During November, the total cash deposited was $70,770 and checks written totaled $65,710. The bank statement indicated a balance of $23,990 on November 30, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,690. b. A deposit of $8,700, representing receipts of November 30, had been made too late to appear on the bank statement, c. A check for $940 had been incorrectly charged by the bank as $490. d. A check for $140 returned with the statement had been recorded by Collegiate Sports Co. as $410. The check was for the payment of an obligation to Ramirez Co. on account. e. The bank had collected for Collegiate Sports Co. $4,600 on a note left for collection. The face of the note was $4,250. f. Bank service charges for November amounted to…