Palmona Company establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. 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 $450. Hint: Make two entries. View transaction list " No 1 2 3 View journal entry worksheet Date January 01 January 08 January 08 General Journal Petty cash Cash Postage expense Merchandise inventory Delivery expense Miscellaneous expenses Cash Petty cash Cash Debit 200 7827 74 29 16 43 250 Credit 200 162 250

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

do not give solution in image 

Palmona Company establishes a $200 petty cash fund on January 1. On January
8, the fund shows $38 in cash along with receipts for the following expenditures:
postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous
expenses, $43. 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 $450. Hint: Make two entries.
View transaction list
2
No
1
2
3
View journal entry worksheet
Date
January 01
January 08
January 08
General Journal
Petty cash
Cash
Postage expense
Merchandise inventory
Delivery expense
Miscellaneous expenses
Cash
Petty cash
Cash
Debit
200
2827
74
29
16
43
250
Credit
200
162
250
Transcribed Image Text:Palmona Company establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. 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 $450. Hint: Make two entries. View transaction list 2 No 1 2 3 View journal entry worksheet Date January 01 January 08 January 08 General Journal Petty cash Cash Postage expense Merchandise inventory Delivery expense Miscellaneous expenses Cash Petty cash Cash Debit 200 2827 74 29 16 43 250 Credit 200 162 250
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Cash and cash equivalents
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education