8? Required information[The following information applies to the questions displayed below]Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund contained cash of $83.25 andvouchers for the following cash payments.Maintenance expenseOffice suppliesTransportation expense$ 66.5088.4032.25The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2)reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. Assume thecompany uses the alternative approach to petty cash expense recognition and replenishment.Requireda. Show each of the three events in a horizontal statements model. (In the Statement of Cash Flows column, indicate whether theitem is an operating activity (OA), investing activity (IA), or a financing activity (FA). Leave blank to indicate that an account wasnot affected by the event. Enter any decreases to account balances and cash outflows with a minus sign. Round your finalanswers to 2 decimal places.)FRESH FOODSHorizontal Statements ModelBalance SheetIncome StatementStockholdersEquityRetainedEarningsNo.AssetsStatement of CashLiabilitiesRevenueExpensesNet IncomeCashPetty CashFlows1.2.3.+ + +

SOLUTION- REIMBURSE AMOUNT = PETTY CASH FUND -FUND BALANCE ON JAN 31.…

Required information [The following information applies to the questions displayed below ] Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund contained cash of $83.25 and vouchers for the following cash payments. Maintenance expense office supplies Transportation expense $ 66.50 88.40 32.25 The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment.

Required information [The following information applies to the questions displayed below ] Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund contained cash of $83.25 and vouchers for the following cash payments. Maintenance expense office supplies Transportation expense $ 66.50 88.40 32.25 The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 1PB: On June 1 French company has decided to initiate a petty cash fund in the amount of $800. Prepare...

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On September 1, French company has decided to initiate a petty cash fund in the amount of $800. Prepare journal entries for the following transactions: A. On September 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $37, Supplies $124, Postage Expense $270, Repairs and Maintenance Expense $168, Miscellaneous Expense $149. The cash on hand at this time was $48. B. On September 14, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $18, Supplies $175, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $210. C. On September 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $88, Postage Expense $63, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $20. D. On September 29, the company determined that the petty cash fund needed to be increased to $1,000. E. On September 30, the petty cash fund needed replenishment as it was month end. The following are the receipts: Auto Expense $18, Supplies $15, Postage Expense $57, Repairs and Maintenance Expense $49, Miscellaneous Expense $29. The cash on hand at this time was $837.
On May 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions: A. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38. B. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $80. C. On June 23, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93. D. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000. E. On June 30, the petty cash fund needed replenishment as it was month-end. The following are the receipts: Auto Expense $114, Supplies $75, Postage Expense $50, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions: A. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38. B. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $110. C. On June 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93. D. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000. E. On June 30, the petty cash fund needed replenishment, as it was month end. The following are the receipts: Auto Expense $14, Supplies $75, Postage Expense $150, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
Record the following transactions: A. Started a petty cash fund in the amount of $1,000. B. Replenished petty cash fund using the following expenses: Auto $61, Office Expenses $23, Postage Expense $57, Miscellaneous Expenses $30. C. The company has decided to reduce the petty cash fund to $600.
Required Information [The following Information applies to the questions displayed below.] Fresh Foods established a petty cash fund of $325 on January 2. On January 31, the fund contalned cash of $141.60 and vouchers for the following cash payments. Maintenance expense $ 68.50 Office supplies Transportation expense 76.00 37.50 The three distinct accounting events affecting the petty cash fund for the perlod were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment. b. Record the events In general Journal format. (If no entry is requlred for a transaction/event, select "No journal entry requlred" In the first account field. Round your answers to 2 decimal places.)
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
1. Brooks Agency set up a petty cash fund for $270. At the end of the current period, the fund contained $192 and had the following receipts: entertainment, $33, postage, $21, and printing, $24. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period. View transaction list Journal entry worksheet Record the establishment of the petty cash fund. Nate: Enter debits befare oredits. Transaction General Journal Debit Credit 1a Hecord entry Clear entry View general journal
Palmona Company establishes a $170 petty cash fund on January 1. On January 8, the fund shows $69 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $30. 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 $220. Hint. Make two entries. View transaction list Journal entry worksheet
Palmona Company establishes a $130 petty cash fund on January 1. On January 8, the fund shows $47 in cash along with receipts for the following expenditures: postage, $35; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $24. 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 $180. 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
1. Brooks Agency set up a petty cash fund for $270. At the end of the current period, the fund contained $192 and had the following receipts: entertainment, $33; postage, $21; and printing, $24. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period. View transaction list Journal entry worksheet 1 2 > Record the establishment of the petty cash fund. Note: Enter debits before credits. Transaction General Journal Debit Credit 1a Record entry Clear entry View general journal 2. Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry. (Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
Havermill Co. establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $85 for Office Supplies, $161 for merchandise Inventory, and $34 for miscellaneous expenses. The fund has a balance of $90. On October 1, the accountant determines that the fund should be increased by $74. The journal entry to record the establishment of the fund on September 1 is: Multiple Choice О Debit Petty Cash $370; credit Accounts Payable $370. O Debit Miscellaneous Expense $370; credit Cash $370. O Debit Petty Cash $370; credit Cash $370. Debit Cash $370; credit Petty Cash $370. О Debit Cash $370; credit Accounts Payable $370.
Havermill Company establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Repairs Expense, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a: Multiple Choice Debit to Repairs Expense for $73. Credit to Merchandise Inventory for $137. Credit to Cash for $250. Debit Petty Cash for $232 Credit to Cash for $18.