Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 4, Problem 61APSA
To determine
Concept Introduction:
Petty Cash Fund:
Petty cash fund the amount of money provided for day to day small expenses depending upon the level of business. All the expenses are made by paying cash; hence there is an important need to maintain control over petty cash fund.
To Prepare:
The
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Recording Petty Cash Transactions
Budding Products had a balance of $400 in cash in its petty cash fund at the beginning of November. The following transactions took place in November:
On November 1, the custodian paid $43 out of petty cash for new pens with Budding’s newly designed logo prominently displayed. This is considered supplies expense.
On November 7, the custodian paid $84 out of petty cash for minor repairs to its equipment. This is a maintenance expense.
On November 9, the custodian paid $33 out of petty cash for transportation-in.
On November 15, the custodian paid $46 out of petty cash to have documents delivered to the accounting firm preparing the company’s corporate tax return. This is considered an other expense.
On November 22, the custodian paid $125 out of petty cash to reimburse the Chief Financial Officer for costs he had incurred in traveling to the airport for an important international business conference. This is a travel expense.
On November 28, the…
Problem 6-2A (Algo) Establishing, reimbursing, and adjusting petty cash LO P2
Kiona Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund
occurred in May (the last month of the company's fiscal year).
May 1 Prepared a company check for $300 to establish the petty cash fund.
May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
May 15 a. Paid $93.60 for janitorial expenses.
May 15 b. Paid $76.41 for miscellaneous expenses.
May 15 c. Paid postage expenses of $52.20.
May 15 d. Paid $68.58 to Facebook for advertising expense.
May 15 e. Counted $23.01 remaining in the petty cashbox.
May 16 Prepared a company check for $200 to increase the fund to $500.
May 31 The petty cashier reports that $339.32 cash remains in the fund. A company check is drawn to replenish the fund for the
following expenditures made since May 15.
May 31 f. Paid postage expenses of $53.73.
May 31 g.…
None
Chapter 4 Solutions
Cornerstones of Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - Prob. 22DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQCh. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 14MCQCh. 4 - Prob. 15MCQCh. 4 - Prob. 16CECh. 4 - Prob. 17CECh. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CECh. 4 - Prob. 20CECh. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CECh. 4 - Prob. 24CECh. 4 - Prob. 25BECh. 4 - Prob. 26BECh. 4 - Prob. 27BECh. 4 - Prob. 28BECh. 4 - Prob. 29BECh. 4 - Prob. 30BECh. 4 - Prob. 31BECh. 4 - Prob. 32BECh. 4 - Prob. 33BECh. 4 - Prob. 34BECh. 4 - Prob. 35BECh. 4 - Prob. 36BECh. 4 - Prob. 37BECh. 4 - Prob. 38BECh. 4 - Prob. 39ECh. 4 - Prob. 40ECh. 4 - Prob. 41ECh. 4 - Prob. 42ECh. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44ECh. 4 - Prob. 45ECh. 4 - Prob. 46ECh. 4 - Prob. 47ECh. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49ECh. 4 - Prob. 50ECh. 4 - Prob. 51ECh. 4 - Prob. 52ECh. 4 - Prob. 53ECh. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSACh. 4 - Prob. 56APSACh. 4 - Prob. 57APSACh. 4 - Prob. 58APSACh. 4 - Prob. 59APSACh. 4 - Prob. 60APSACh. 4 - Prob. 61APSACh. 4 - Prob. 55BPSBCh. 4 - Prob. 56BPSBCh. 4 - Prob. 57BPSBCh. 4 - Prob. 58BPSBCh. 4 - Prob. 59BPSBCh. 4 - Prob. 60BPSBCh. 4 - Prob. 61BPSBCh. 4 - Prob. 62.1CCh. 4 - Prob. 62.2CCh. 4 - Prob. 62.3CCh. 4 - Prob. 62.4CCh. 4 - Prob. 63.1CCh. 4 - Prob. 63.2CCh. 4 - Prob. 64.1CCh. 4 - Prob. 64.2CCh. 4 - Prob. 65CCh. 4 - Prob. 66.1CCh. 4 - Prob. 66.2CCh. 4 - Prob. 67.1CCh. 4 - Prob. 67.2CCh. 4 - Prob. 68.1CCh. 4 - Prob. 68.2CCh. 4 - Prob. 68.3CCh. 4 - Prob. 68.4CCh. 4 - Prob. 69.1CCh. 4 - Prob. 69.2CCh. 4 - Prob. 69.3CCh. 4 - Prob. 69.4CCh. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2CCh. 4 - Prob. 70.3CCh. 4 - Prob. 70.4C
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- View Policies Current Attempt in Progress Sheridan Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug. 1 (a) 15 16 31 Established the petty cash fund by writing a check payable to the petty cash custodian for $225. Replenished the petty cash fund by writing a check for $220.30. On this date, the fund consisted of $4.70 in cash and these petty cash receipts: freight-out $96, entertainment expense $48.70, postage expense $41.70, and miscellaneous expense $32.50. Increased the amount of the petty cash fund to $325 by writing a check for $100.00. Replenished the petty cash fund by writing a check for $309.30. On this date, the fund consisted of $15.70 in cash and these petty cash receipts: postage expense $139.80, entertainment expense $96.40, and freight-out $71.80. Journalize the petty cash transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is…arrow_forwardProblems on petty Cash Exercise 1 Al Shams LLC Expeditions established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary journal entries for petty cash. Established a RO 1,000 petty cash fund by writing a cheque to “cash,” cashing the cheque, and placing the proceeds in a petty cash box entrusted to Mr. Ahmed as custodian. At the end of the month, the petty cash fund contained remaining cash of RO 254, and receipts for RO 130 postage, RO 246 office supplies, and RO 360 gasoline for company vehicles. Mr. Ahmed is not sure why the fund is short RO 10. A cheque payable to cash in the amount of RO 746 was prepared, and the funds were placed into the box. At the end of the next month, the petty cash fund contained remaining cash of RO 70, and receipts for RO 530 postage, RO 320 office supplies, and RO 80 gasoline for company vehicles. A cheque payable to cash in the amount of RO 1,430 was prepared, and the funds were…arrow_forwardProblem 6 During August, several minor activities involving petty cash funds occurred at the Wittleston Inn. a. On August 1, a petty cash fund was established in the amount of $100. b. On August 10, the fund was replenished, since it had a $12 balance. The written receipts were as follows: Fresh fruit (food) 30 Gasoline for mowing of lawn 25 COD for package for guest $ 35 c. On August 20, the fund was replenished and the written receipts were as follows: Stamps $ 50 Fresh fruit Shipping charges to UPS Office supplies $ SA SA $ Office supplies $ 40 d. On August 31, the petty cash fund, with a $5 balance, was replenished and the following receipts were: $ SA SA $ $ 30 40 24arrow_forward
- 28 Lewis Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May. May 1 Prepared a company check for $550 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. a. Paid $190 for janitorial services. b. Paid $142 for miscellaneous expenses. c. Paid postage expenses of $95. d. Paid $47 to Facebook for advertising expense. e. Counted $87 remaining in the petty cash box. May 16 Prepared a company check for $250 to increase the fund to $800. May 31 The petty cashier reports that $320 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $280. g. Reimbursed the office manager for business mileage, $140. h. Paid $46 to deliver merchandise to a customer, terms FOB destination. May 31 The company decides that the May 16 increase in the fund…arrow_forwardPlease answer this accounting question correctlyarrow_forwardInstructions The following petty cash transactions were noted by the petty cashier as occurring during April 2005: April 1- Received a company cheque for $250 to establish the petty cash fund. April 15- Received a company cheque to replenish the fund for the following expenditures made since April 1 and to increase the fund to $450 a. Paid $78 for janitorial service. b. Purchased office supplies for $63.68 c. Purchased postage stamps for $43.50 d. Paid $57.15 to the County Crier for an advertisement in the newspaper. e. Discovered that $11.15 remained in the petty cash box. April 30- The petty cashier noted that $333.39 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was drawn to replenish the fund for the following expenditures made since April 15 to reduce the fund to $400. f. Purchased office supplies for $48.36 g. Reimbursed office manager for business auto, $28.50 h. Paid $39.75 courier charges to deliver…arrow_forward
- Please answer question as soon as possible pleasearrow_forwardsh2arrow_forwardF6 PROBLEM 6-2B On March 1 of this year, Stowe Company established a Petty Cash Fund, and the following petty cash transactions took place during the month: Mar. 1 Cashed check no. 314 for $100 to establish a Petty Cash Fund, and put the $100 in a locked drawer in the office. & 7 F7 U 4 7 9 16 20 25 Issued voucher no. 1 for taxi fare, $7.60 (Miscellaneous Expense). Issued voucher no. 2 for memo pads, $6.50 (Office Supplies). Paid $21.50 for an advertisement in a college basketball program, voucher no. 3. Bought postage stamps, $8.80, voucher no. 4 (Miscellaneous Expense). Paid $10 to have snow removed from office front sidewalk, voucher no. 5 (Miscellaneous Expense). Issued voucher no. 6 for delivery charge, $12. ★ (Continued) Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 F8 - F9 ( 9 99+ form. (DELL prt sc 0 F10 ) home P F11 end F12 { ~ ~ [ + insert 66 } delete 1 LO backspacearrow_forward
- Please complete this question correctlyarrow_forwardL Recording Petty Cash Account Transactions During March, Drapeau Company engaged in the following transactions involving its petty cash fund: a. On March 1, Drapeau Company established the petty cash fund by issuing a cheque for $1,500 to the fund custodian. b. On March 4, the custodian paid $103 out of petty cash for freight charges on new equipment. This amount is properly classified as equipment. c. On March 12, the custodian paid $140 out of petty cash for supplies. Drapeau expenses supplies purchases as supplies expense. d. On March 22, the custodian paid $28 out of petty cash for express mail services for reports sent to Environment Canada. This is considered a miscellaneous expense. e. On March 25, the custodian filed a claim for reimbursement of petty cash expenditures during the month totalling $271. f. On March 31, Drapeau Issued a cheque for $271 to the custodian, replenishing the fund for expenditures during the month. Required: Prepare the journal entries required to…arrow_forwardRecall on February 1, Derrick Company established a $200 petty cash fund. On February 15, when the fund balance reached $7, the petty cash custodian prepared a petty cash report that summarized receipts for postage ($140) and printing ($54). Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus. View transaction list Journal entry worksheet 1 Recall on February 1, Derrick Company established a $200 petty cash fund. On February 15, when the fund balance reached $7, the petty cash custodian prepared a petty cash report that summarized receipts for postage ($140) and printing ($54). Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down monur Note: Enter debits before credits. Date Feb. 15 General Journal Debit Creditarrow_forward
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