Lang Company completed the following petty cash transactions during April 2022 Date Receipt # For Amount Apr 10 Cheque to establish Petty Cash Fund $100 Apr 15 1 Paid courier, to deliver goods sold to a customer $14.10 Apr 17 2 Freight for inventory purchased(Perpetual system) $28.90 Apr 19 3 Receipt from Staples for paper $11.45 Apr 21 4 Receipt from Petro Canada $38.00 Apr 24 5 Postage $5.55 Apr 25 Fund counted, funds remaining $4.00 Prepare a journal entry to record the establishing the petty cash fund. Prepare a journal entry to record the reimbursement and increase of the fund to $125. (from $100 to $125) Now assume, the Part 2 did not happen and the fund decreased from $100 to $75, prepare a journal entry to record the reimbursement and decrease of the fund
Lang Company completed the following petty cash transactions during April 2022 Date Receipt # For Amount Apr 10 Cheque to establish Petty Cash Fund $100 Apr 15 1 Paid courier, to deliver goods sold to a customer $14.10 Apr 17 2 Freight for inventory purchased(Perpetual system) $28.90 Apr 19 3 Receipt from Staples for paper $11.45 Apr 21 4 Receipt from Petro Canada $38.00 Apr 24 5 Postage $5.55 Apr 25 Fund counted, funds remaining $4.00 Prepare a journal entry to record the establishing the petty cash fund. Prepare a journal entry to record the reimbursement and increase of the fund to $125. (from $100 to $125) Now assume, the Part 2 did not happen and the fund decreased from $100 to $75, prepare a journal entry to record the reimbursement and decrease of the fund
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Lang Company completed the following petty cash transactions during April 2022
|
Date |
Receipt # |
For |
Amount |
|
Apr 10 |
|
Cheque to establish Petty Cash Fund |
$100 |
|
Apr 15 |
1 |
Paid courier, to deliver goods sold to a customer |
$14.10 |
|
Apr 17 |
2 |
Freight for inventory purchased(Perpetual system) |
$28.90 |
|
Apr 19 |
3 |
Receipt from Staples for paper |
$11.45 |
|
Apr 21 |
4 |
Receipt from Petro Canada |
$38.00 |
|
Apr 24 |
5 |
Postage |
$5.55 |
|
Apr 25 |
|
Fund counted, funds remaining |
$4.00 |
- Prepare a
journal entry to record the establishing the petty cash fund. - Prepare a journal entry to record the reimbursement and increase of the fund to $125. (from $100 to $125)
- Now assume, the Part 2 did not happen and the fund decreased from $100 to $75, prepare a journal entry to record the reimbursement and decrease of the fund
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