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FINANCIAL ACCOUNTING
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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Prepare journal entries to ( establish the fund on n part 2. Hint Make two separate entries for parr imburse the fund and Palmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the Polmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the following expenditures: postage, $46; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. following expenditures: postage, $46; transportation-in, $10: delivery expenses. $12: and miscellaneous expenses, $35. Palmona uses perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) estabilish the fund on January 1. (2) reimburse it on January 8, and (3) both reimburse the fund and Increase it to $200 on January 8. assuming no entry in port 2. Hint Make two separate entries for part 3. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and Increase it to $200 on January 8, assuming no entry in part 2. Hint Make two separate entries for part 3. View transaction list View transaction list Journal entry worksheet Journal entry worksheet 3 4 Record the reimbursement of the petty cash fund. Prepare the journal entry to establish the petty cash fund. Note: Enter debits before credits. Note: Enter debits before credits. Date General Journal IDebit Credit Date General Josurmal IDebit Credit Jan O Jan 01 Record entry Clear entry View general journal Record entry Clear entry View general journal Palmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the following expenditures: postage. $46; transportation-in, $10; delivery expenses. $12: and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. Palmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the following expenditures: postage. $46; transportation-in, $10; delivery expenses, $12. and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1. (2) reimburse it on January 8. and (3) both reimburse the fund and increase it to $200 on January 8, assuming no entry in part 2. Hint Make two separate entries for part 3. Prepare journal entries to (1) establish the fund on January 1. (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $200 on January 8, assuming no entry in part 2. Hint Make two separate entries for part 3. View transaction list View transaction list Journal entry worksheet Journal entry worksheet < 1 2 > 3 4 < 1 2 3 4 Record the reimbursement of the petty cash fund. Record the increase of the petty cash fund. Note: Enter debits before credits. Date t t Credit General Journal Debit Note: Enter debits before credits. Jan 08 Date General Jourmal Debit Credit Jan 08 Record entry Clear entry View general journal Record entry Clear entry View general journal
Transcribed Image Text:Prepare journal entries to ( establish the fund on n part 2. Hint Make two separate entries for parr imburse the fund and Palmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the Polmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the following expenditures: postage, $46; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. following expenditures: postage, $46; transportation-in, $10: delivery expenses. $12: and miscellaneous expenses, $35. Palmona uses perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) estabilish the fund on January 1. (2) reimburse it on January 8, and (3) both reimburse the fund and Increase it to $200 on January 8. assuming no entry in port 2. Hint Make two separate entries for part 3. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and Increase it to $200 on January 8, assuming no entry in part 2. Hint Make two separate entries for part 3. View transaction list View transaction list Journal entry worksheet Journal entry worksheet 3 4 Record the reimbursement of the petty cash fund. Prepare the journal entry to establish the petty cash fund. Note: Enter debits before credits. Note: Enter debits before credits. Date General Journal IDebit Credit Date General Josurmal IDebit Credit Jan O Jan 01 Record entry Clear entry View general journal Record entry Clear entry View general journal Palmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the following expenditures: postage. $46; transportation-in, $10; delivery expenses. $12: and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. Palmona Co. establishes a $150 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the following expenditures: postage. $46; transportation-in, $10; delivery expenses, $12. and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1. (2) reimburse it on January 8. and (3) both reimburse the fund and increase it to $200 on January 8, assuming no entry in part 2. Hint Make two separate entries for part 3. Prepare journal entries to (1) establish the fund on January 1. (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $200 on January 8, assuming no entry in part 2. Hint Make two separate entries for part 3. View transaction list View transaction list Journal entry worksheet Journal entry worksheet < 1 2 > 3 4 < 1 2 3 4 Record the reimbursement of the petty cash fund. Record the increase of the petty cash fund. Note: Enter debits before credits. Date t t Credit General Journal Debit Note: Enter debits before credits. Jan 08 Date General Jourmal Debit Credit Jan 08 Record entry Clear entry View general journal Record entry Clear entry View general journal
Expert Solution
Step 1

Introduction:

Petty Cash Fund is Created and used for payment of small amounts of expenditures incurred in the course of business where it is not possible to make payment by way of Cheque, due to the process of disbursement of such small unplanned payments may be inconvenient to us and also others. 

For this purpose, Petty cash fund is Created by the company and handed over it to Custodian. Individual disbursements from petty cash are recorded through a journal entry is passed at the time of each replenishment and at the end of the period for the total amount disbursed.

 

 

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