Stihl Repairs completed the following petty cash transactions during July 2017: July 5 Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Bob Stuart, the petty cashier. 6 Paid $108.00 COD charges on merchandise purchased for resale. Stihl Repairs uses the perpetual inventory method to account for merchandise inventory. 11 Paid $23.75 delivery charges on merchandise sold to a costumer. 12 Purchased file folders. $8.50. 14 Reimbursed Collin Dodge, the manager of the business. $8.26 for office supplies purchased. 18 Purchased paper for printer. $12.15. 27 Paid $21.60 COD charges on merchandise purchased for resale. 28 Purchased stamps. $23.00. 30 Reimbursed Collin Dodge $64.80 for business car expenses. 31 Bob Stuart sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $233.94 in cash in the fund. In addition, the size of the petty cash fund was decreased to $300. Required: Prepare a general journal entry to record establishing the petty cash fund. Prepare a summary of petty cash payments with these categories: delivery expense, auto expense, postage expense, merchandise inventory, and office supplies. Prepare the general journal entry to record the reimbursement and the increase of the fund.
Stihl Repairs completed the following petty cash transactions during July 2017:
July 5 Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Bob Stuart, the petty cashier.
6 Paid $108.00 COD charges on merchandise purchased for resale. Stihl Repairs uses the perpetual inventory method to account for merchandise inventory.
11 Paid $23.75 delivery charges on merchandise sold to a costumer.
12 Purchased file folders. $8.50.
14 Reimbursed Collin Dodge, the manager of the business. $8.26 for office supplies purchased.
18 Purchased paper for printer. $12.15.
27 Paid $21.60 COD charges on merchandise purchased for resale.
28 Purchased stamps. $23.00.
30 Reimbursed Collin Dodge $64.80 for business car expenses.
31 Bob Stuart sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $233.94 in cash in the fund. In addition, the size of the petty cash fund was decreased to $300.
Required:
- Prepare a general
journal entry to record establishing the petty cash fund. - Prepare a summary of petty cash payments with these categories: delivery expense, auto expense, postage expense, merchandise inventory, and office supplies.
- Prepare the general journal entry to record the reimbursement and the increase of the fund.
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