Problem 1-7 (IAA)Laborious Company closed the accounts on June 30. Theentity provided the following transactions:May 2 The entity established an imprest fund of P10,000.29 The fund is replenished. The petty cash itemsinclude:Currency and coinPostageSuppliesTransportationMiscellaneous expense2,0001,0003,0002,5001,500June 30 The fund was not replenished. The fund is composedof the following:Currency and coinSuppliesPostageTransportation6,0002,0001,0001,000July 15 The fund is replenished and increased to P15,000.Currency and coinSuppliesPostageTransportationMiscellaneous expense3,0003,5001,5001,500500Required:Prepare journal entries to record the transactions underimprest fund system and fluctuating fund system.

In the imprest system of petty cash funds the balance of petty cash is fixed whereas in the…

Answered: Required: Prepare journal entries to…

Business

Accounting

Required: Prepare journal entries to record the transactions under imprest fund system and fluctuating fund system.

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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Question

Problem 1-7 (IAA)
Laborious Company closed the accounts on June 30. The
entity provided the following transactions:
May 2 The entity established an imprest fund of P10,000.
29 The fund is replenished. The petty cash items
include:
Currency and coin
Postage
Supplies
Transportation
Miscellaneous expense
2,000
1,000
3,000
2,500
1,500
June 30 The fund was not replenished. The fund is composed
of the following:
Currency and coin
Supplies
Postage
Transportation
6,000
2,000
1,000
1,000
July 15 The fund is replenished and increased to P15,000.
Currency and coin
Supplies
Postage
Transportation
Miscellaneous expense
3,000
3,500
1,500
1,500
500
Required:
Prepare journal entries to record the transactions under
imprest fund system and fluctuating fund system.

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