Exercise 8-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $140 petty cash fund on January 1. On January 8, the fund shows $37 in cash along with receipts for the following expenditures: postage, $45; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $34. 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 $190. Hint. Make two entries.

Exercise 8-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $140 petty cash fund on January 1. On January 8, the fund shows $37 in cash along with receipts for the following expenditures: postage, $45; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $34. 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 $190. Hint. Make two entries.

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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Petty Cash PolekMart established a $1,050 petty cash fund on May 2. On May 30, the fund shows $326 in cash along with receipts for the following expenditures: transportation-in, $120; postage expenses, $369, and miscellaneous expenses, $240. The company uses the perpetual system in accounting for merchandise inventory. Prepare the entries to (1) establish the fund, (2) reimburse the fund, and (3) increase the fund to $1,200.
Record entry for recognition of expenses and replenishment of the fund, record entry for reimbursements made by employee, record entry for petty cash found.
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…
Problem 9.1A (Static) Journalizing cash receipts, cash short or over, and posting to the general ledger. LO 9-1 Candy’s Cupcakes, a retail business, started business on June 25, 20X1. It keeps a $300 change fund in its cash register. The cash receipts for the period from June 25 to June 30, 20X1, are below. DATE TRANSACTIONS June 25 Cash sales per the cash register tape, $1,238. Cash count, $1,529. 26 Cash sales per the cash register tape, $1,346. Cash count, $1,640. 27 Cash sales per the cash register tape, $1,359. Cash count, $1,661. 28 Cash sales per the cash register tape, $1,288. Cash count, $1,582. 29 Cash sales per the cash register tape, $1,135. Cash count, $1,439. 30 Cash sales per the cash register tape, $1,374. Cash count, $1,668. Required: Record the cash receipts from June 25 to June 30, 20X1, in a general journal. Post the amounts for Cash Short or Over in the journal entries to the general ledger.…
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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.
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