Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $83 in cas the following expenditures: postage, $38; transportation-in, $15; delivery expenses, $17; and miscellaneous ex 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 $230. Hint. Make two entries.
Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $83 in cas the following expenditures: postage, $38; transportation-in, $15; delivery expenses, $17; and miscellaneous ex 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 $230. Hint. Make two entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $83 in cash
the following expenditures: postage, $38; transportation-in, $15; delivery expenses, $17; and miscellaneous ex
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 $230. Hint. Make two entries.
View transaction list
Journal entry worksheet
1
2
3
4
Record the journal entry to establish the petty cash fund.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9de62490-29a1-4126-ad53-0c4c5fc3af72%2F7283f39f-3ee7-4921-8b96-465b8f0cdcc4%2F4qm5ek7_processed.png&w=3840&q=75)
Transcribed Image Text:Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $83 in cash
the following expenditures: postage, $38; transportation-in, $15; delivery expenses, $17; and miscellaneous ex
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 $230. Hint. Make two entries.
View transaction list
Journal entry worksheet
1
2
3
4
Record the journal entry to establish the petty cash fund.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
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