Sheridan Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results.June 1: Cash in fund $2.55. Receipts: delivery expense $27.05, postage expense $38.30, and miscellaneous expense $29.90.July 1: Cash in fund $4.05. Receipts: delivery expense $22.50, entertainment expense $47.50, and miscellaneous expense $25.95.On July 10, Sheridan increased the fund from $100 to $130.00.Prepare journal entries for Sheridan Company for May 1, June 1, July 1, and July 10. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit

Petty cash fund will be used for petty expenses. First, we take some amount from the bank account and use them for the monthly petty expenses. Journal entries - Date Particulars Debit Credit May 1 Petty cash fund account Dr $100 cash account Cr $100 ( To record establishment of petty cash fund) June 1 delivery expense $27.05 postage expense $38.30 miscellaneous expense $29.90 cash over and short $2.20 cash account ($100 - $2.55) $97.45 ( To record Preplenish of petty cash fund) July 1 delivery expense $22.50 entertainment expense $47.50 miscellaneous expense $25.95 Cash account ($100 - $4.05) $95.95 ( To record Preplenish of petty cash fund) July 10 Petty cash account Dr ($100 increased to $130) $30 cash account $30 ( To record cash given to petty cash fund)

Answered: Sheridan Company established a 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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Sheridan Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results.

June 1: Cash in fund $2.55.		Receipts: delivery expense $27.05, postage expense $38.30, and miscellaneous expense $29.90.
July 1: Cash in fund $4.05.		Receipts: delivery expense $22.50, entertainment expense $47.50, and miscellaneous expense $25.95.

On July 10, Sheridan increased the fund from $100 to $130.00.

Prepare journal entries for Sheridan Company for May 1, June 1, July 1, and July 10. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

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