Halle's Berry Farm establishes a $400 petty cash fund on September 4 to pay for minor cash expenditures. The fund is replenished at the end of each month. At the end of September, the fund contains $315 in cash. The company has also issued a credit card and authorized its office manager to make purchases. Expenditures for the month include the following items: Entertainment for office party (petty cash)$85 Lawn maintenance (credit card) 115 Postage (credit card) 70 Fuel for deliveries (credit card) 80 Required:Record the establishment of the petty cash fund on September 4.Record credit card expenditures during the month. The credit card balance is not yet paid.Record petty cash expenditures during the month.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Petty cash expenses are used to record small business expenditure by separately setting up a petty…

Answered: Halle's Berry Farm establishes a $400…

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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Halle's Berry Farm establishes a $400 petty cash fund on September 4 to pay for minor cash expenditures. The fund is replenished at the end of each month. At the end of September, the fund contains $315 in cash. The company has also issued a credit card and authorized its office manager to make purchases. Expenditures for the month include the following items:


Entertainment for office party (petty cash)	$	85
Lawn maintenance (credit card)		115
Postage (credit card)		70
Fuel for deliveries (credit card)		80

Required:

Record the establishment of the petty cash fund on September 4.
Record credit card expenditures during the month. The credit card balance is not yet paid.
Record petty cash expenditures during the month.

(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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