On October 1, 2020, Faith Company established an imprest petty cash fund by issuing a check for P2,000 to Joy Youz, the custodian of the petty cash fund. Faith Co. allows expenses of P1,000 and below to be charged to Petty Cash Fund. Any expenditure beyond this amount will require check issuance to the payee. October petty cash transactions were as follows: Date PCV # Transaction Amount 02-Oct 1 Freight paid to MamaMove on merchandise purchase P400.00 05-Oct 2 Cash advance of a co-employee 500.00 07-Oct 3 One week cellphone load of the liaison personnel 100.00 08-Oct 4 Purchase of office supplies 550.00 10-Oct 5 Reimbursement of transportation expenses of the liaison personnel 300.00 12-Oct Petty cash replenishment, Check # 002357 12-Oct Increase in petty cash fund to P3,000.00, Check # 002358 14-Oct 6 One week cellphone load of the liaison personnel 100.00 14-Oct 7 Reimbursement of transportation expenses 300.00 15-Oct 8 Snack treat to the office staff in celebration of Joy Youz birthday, 70% chargeable to office (Meals & Other Representation Exp), 30% shouldered by Joy 1,000.00 17-Oct 9 Gift to a valued client for their golden wedding anniversary (Meals & Other Representation Expenses) 1,000.00 20-Oct 10 Courier service for delivery of merchandise 200.00 21-Oct 11 An employee reimbursed cost of meals from his recent out of town trip 350.00 22-Oct Cash count prior to replenishment was P50.00, while total PCVs amount to P2,650.00. The fund was replenished with Check# 002393 The business uses the following account titles for its expenses: Freight in for freight on merchandise Transportation expenses for transportation expenses of official business errands Telecommunication expenses for telephone expenses, cellphone loads, internet subscription Meals & Other Representation expenses occasional treats and meals for employees & clients, meals for official out of town trips, gifts to clients Advances to employees salary cash advances by employees Office Supplies purchase of supplies Requirement: -Petty Cash Book

On October 1, 2020, Faith Company established an imprest petty cash fund by issuing a check for P2,000 to Joy Youz, the custodian of the petty cash fund. Faith Co. allows expenses of P1,000 and below to be charged to Petty Cash Fund. Any expenditure beyond this amount will require check issuance to the payee. October petty cash transactions were as follows: Date PCV # Transaction Amount 02-Oct 1 Freight paid to MamaMove on merchandise purchase P400.00 05-Oct 2 Cash advance of a co-employee 500.00 07-Oct 3 One week cellphone load of the liaison personnel 100.00 08-Oct 4 Purchase of office supplies 550.00 10-Oct 5 Reimbursement of transportation expenses of the liaison personnel 300.00 12-Oct Petty cash replenishment, Check # 002357 12-Oct Increase in petty cash fund to P3,000.00, Check # 002358 14-Oct 6 One week cellphone load of the liaison personnel 100.00 14-Oct 7 Reimbursement of transportation expenses 300.00 15-Oct 8 Snack treat to the office staff in celebration of Joy Youz birthday, 70% chargeable to office (Meals & Other Representation Exp), 30% shouldered by Joy 1,000.00 17-Oct 9 Gift to a valued client for their golden wedding anniversary (Meals & Other Representation Expenses) 1,000.00 20-Oct 10 Courier service for delivery of merchandise 200.00 21-Oct 11 An employee reimbursed cost of meals from his recent out of town trip 350.00 22-Oct Cash count prior to replenishment was P50.00, while total PCVs amount to P2,650.00. The fund was replenished with Check# 002393 The business uses the following account titles for its expenses: Freight in for freight on merchandise Transportation expenses for transportation expenses of official business errands Telecommunication expenses for telephone expenses, cellphone loads, internet subscription Meals & Other Representation expenses occasional treats and meals for employees & clients, meals for official out of town trips, gifts to clients Advances to employees salary cash advances by employees Office Supplies purchase of supplies Requirement: -Petty Cash Book

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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Question

On October 1, 2020, Faith Company established an imprest petty cash fund by issuing a check for P2,000 to Joy Youz, the custodian of the petty cash fund. Faith Co. allows expenses of P1,000 and below to be charged to Petty Cash Fund. Any expenditure beyond this amount will require check issuance to the payee.
October petty cash transactions were as follows:

Date	PCV #	Transaction	Amount
02-Oct	1	Freight paid to MamaMove on merchandise purchase	P400.00
05-Oct	2	Cash advance of a co-employee	500.00
07-Oct	3	One week cellphone load of the liaison personnel	100.00
08-Oct	4	Purchase of office supplies	550.00
10-Oct	5	Reimbursement of transportation expenses of the liaison personnel	300.00
12-Oct		Petty cash replenishment, Check # 002357
12-Oct		Increase in petty cash fund to P3,000.00, Check # 002358
14-Oct	6	One week cellphone load of the liaison personnel	100.00
14-Oct	7	Reimbursement of transportation expenses	300.00
15-Oct	8	Snack treat to the office staff in celebration of Joy Youz birthday, 70% chargeable to office (Meals & Other Representation Exp), 30% shouldered by Joy	1,000.00
17-Oct	9	Gift to a valued client for their golden wedding anniversary (Meals & Other Representation Expenses)	1,000.00
20-Oct	10	Courier service for delivery of merchandise	200.00
21-Oct	11	An employee reimbursed cost of meals from his recent out of town trip	350.00
22-Oct		Cash count prior to replenishment was P50.00, while total PCVs amount to P2,650.00. The fund was replenished with Check# 002393

The business uses the following account titles for its expenses:
Freight in		for freight on merchandise
Transportation expenses	for transportation expenses of official business errands
Telecommunication expenses	for telephone expenses, cellphone loads, internet subscription
Meals & Other Representation expenses	occasional treats and meals for employees & clients, meals for official out of town trips, gifts to clients
Advances to employees	salary cash advances by employees
Office Supplies	purchase of supplies

Requirement:

-Petty Cash Book

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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