Suppose that on June 1, Cool Gyrations l, a disc jockey service, create a a petty cash with an impress balance of $400. During June, Ruth Mangan, fund custodian, signs the following petty cash ticket:On June 30, prior to replenishment, the fun contains these tickets plus cash of $246. The accounts affected cash payments are Office Supplies, Entertainment Expense l, and postage Expense . Data TablePetty CashTicket NumberItemAmount1Postage for package received30Office party2513Two boxes of stationery204Printer cartridges15Business dinner60PrintDone - XRequirementsan imprestEcounts affec1. On June 30, how much cash should this petty cash fund hold before it isreplenished?2. Journalize all required entries to (a) create the fund and (b) replenish it.Include explanations.3. Make the entry on May 1 to increase the fund balance to $500. Include anexplanation.PrintDoneJournalize the replenishment of the fund. (Prepare a single compound journal entry.)DateAccounts and ExplanationDebitCreditJun. 30Entertainment ExpenseOffice SuppliesPostage ExpenseCash Short and OverCashChoose from any list or enter any number in the input fields and then click Check Answer.

Petty cash: Petty cash fund is established to pay insignificant amount small expenses like office…

Answered: Suppose that on June 1, Cool Gyrations…

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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Suppose that on June 1, Cool Gyrations l, a disc jockey service, create a a petty cash with an impress balance of $400. During June, Ruth Mangan, fund custodian, signs the following petty cash ticket: On June 30, prior to replenishment, the fun contains these tickets plus cash of $246. The accounts affected cash payments are Office Supplies, Entertainment Expense l, and postage Expense .

Data Table
Petty Cash
Ticket Number
Item
Amount
1
Postage for package received
30
Office party
25
13
Two boxes of stationery
20
4
Printer cartridges
15
Business dinner
60
Print
Done

- X
Requirements
an imprest
Ecounts affec
1. On June 30, how much cash should this petty cash fund hold before it is
replenished?
2. Journalize all required entries to (a) create the fund and (b) replenish it.
Include explanations.
3. Make the entry on May 1 to increase the fund balance to $500. Include an
explanation.
Print
Done
Journalize the replenishment of the fund. (Prepare a single compound journal entry.)
Date
Accounts and Explanation
Debit
Credit
Jun. 30
Entertainment Expense
Office Supplies
Postage Expense
Cash Short and Over
Cash
Choose from any list or enter any number in the input fields and then click Check Answer.

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