A company establishes a petty cash fund on August 3 for $430. The fund is replenished at the end of each month. The company has also issued a credit card for its office manager to make more substantial purchases. At the end of August, the following purchases have been made: Petty Cash Fund Credit Card Delivery fees$125 Equipment$1,900 Plumbing maintenance 78 Advertising 850 Postage 43 Supplies 370 Flowers for the office 51 $297 $3,120 Record the establishment of the petty cash fund on August 3. On August 31, record the petty cash expenditures during the month and the employee credit card expenditures during the month. Note: the credit card balance will not be paid until the following month. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Petty Cash: It is the fund which is kept in hand by business units to cover minor expenses (postage,…

Answered: Record the establishment of the petty…

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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A company establishes a petty cash fund on August 3 for $430. The fund is replenished at the end of each month. The company has also issued a credit card for its office manager to make more substantial purchases. At the end of August, the following purchases have been made:

Petty Cash Fund			Credit Card
Delivery fees	$	125		Equipment	$	1,900
Plumbing maintenance		78		Advertising		850
Postage		43		Supplies		370
Flowers for the office		51
	$	297			$	3,120

Record the establishment of the petty cash fund on August 3. On August 31, record the petty cash expenditures during the month and the employee credit card expenditures during the month. Note: the credit card balance will not be paid until the following month. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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