Service World maintains a petty cash fund. The fund custodian encountered the following events.a. The fund was established when a check for $300 was cashed and deposited into a locked cashbox.b. An employee submitted a receipt for a customer delivery costing $20 and was reimbursed infull from petty cash.c. Another employee submitted a receipt for $60 for locksmith repairs to the office door andwas reimbursed in full from petty cash.d. An employee submitted a receipt for newspaper advertising that cost the company $50. Shewas given $50 from the petty cash box.e. The petty cash custodian received and cashed a check that fully replenished the petty cashfund.f. An employee submitted a receipt for $35 for supplies and was reimbursed in full from pettycash.g. An employee submitted a receipt for $65 for filling up his personal vehicle. He was notreimbursed because it would violate company policy.h. At the end of the month, a check was given to the petty cash custodian to not only replenishthe petty cash fund but also increase the total fund to $400.Required:1. Prepare any required journal entries.2. If Service World has $1,000 cash, $500 of government Treasury bills purchased last monthwith a six-week maturity, and $750 of cash set aside for legal reasons, how much will thecompany report on the balance sheet as “Cash and Cash Equivalents”?
Service World maintains a petty cash fund. The fund custodian encountered the following events.
a. The fund was established when a check for $300 was cashed and deposited into a locked cash
box.
b. An employee submitted a receipt for a customer delivery costing $20 and was reimbursed in
full from petty cash.
c. Another employee submitted a receipt for $60 for locksmith repairs to the office door and
was reimbursed in full from petty cash.
d. An employee submitted a receipt for newspaper advertising that cost the company $50. She
was given $50 from the petty cash box.
e. The petty cash custodian received and cashed a check that fully replenished the petty cash
fund.
f. An employee submitted a receipt for $35 for supplies and was reimbursed in full from petty
cash.
g. An employee submitted a receipt for $65 for filling up his personal vehicle. He was not
reimbursed because it would violate company policy.
h. At the end of the month, a check was given to the petty cash custodian to not only replenish
the petty cash fund but also increase the total fund to $400.
Required:
1. Prepare any required journal entries.
2. If Service World has $1,000 cash, $500 of government Treasury bills purchased last month
with a six-week maturity, and $750 of cash set aside for legal reasons, how much will the
company report on the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
