Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 4, Problem 61BPSB
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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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.…
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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.
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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
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Problem 14
During July, several events occurred at the Floamingo Resort.
a. On July 1, a Petty Cash Fund was established in the amount of $100.
b. On July 15, the fund was replenished, since it had a balance of $4 with the following receipt:
Postage
30
Office Supplies
25
Shipping Charges to UPS
c. On July 16, the fund was increase to $200.
d. On July 31, the fund was replenished, since it had a balcne of $12 with the following receipt:
Spare Parts
35
Stamps
28
Shop Supplies
27
Inventory
100
40
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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- Problem 14 During July, several events occurred at the Flamingo Resort. a. On July 1, a Petty Cash Fund was established in the amount of $100. b. On July 15, the fund was replenished, since it had a balance of $4 with the following receipts: Postage $30 $25 $40 Office Supplies 190 Shipping Charges to UPS c. On July 16, the fund was increased to $200. d. On July 31, the fund was replenished, since it had a balance of $12 with the following receipts: Spare Parts Stamps Shop Supplies Inventory $35 $28 $27 00.00 $100 alo Required: Journalize all of the necessary transactions for July in chronological order.arrow_forwardNonearrow_forwardExercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 Fresh Foods established a petty cash fund of $94 on January 2. On January 31, the fund contained cash of $9.40 and vouchers for the following cash payments: Maintenance expense Office supplies Transportation expense The four distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses including any amount of cash short or over and (4) replenishment of the fund Assume the Company uses the alternative approach to petty cash expense recognition and replenishment Required Show each of the four events in the following horizontal statements model (Enter any decreases to account balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or leave the cell blank if there is no…arrow_forward
- L 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_forwardView 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_forward34 On September 1, a company established a petty cash fund of $120. On September 10, the petty cash fund was replenished when there was $26 remaining and there were petty cash receipts for supplies, $31, and postage, $58. On September 15, the petty cash fund was increased to $155. Required:Prepare the journal entries, if any, required on September 1, September 10, and September 15. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)arrow_forward
- QUESTION 6 Brown Company's bank statement for September 30 showed: Bank statement balance Book balance of cash $2,790 $3,724 The following information was also available as of September 30: a. A customer's check for $150 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company's account a $10 processing fee. b. The September 30 cash receipts, $3,000 were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement. c. Outstanding checks amounted to $2,190. d. A check for rent expense was written for $326 but by mistake was recorded in the accounting records as $362. Required: Prepare bank reconciliation as of September 30.arrow_forwardsh2arrow_forwardRecording 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…arrow_forward
- Problems #3 On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions: A. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38. B. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $110. C. On June 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93. D. On June 29, the company determined that the petty cash fund needed to be…arrow_forwardPROBLEM 7A-4 Another Com- prehensive Bank Reconcil- Daytona Recycling Center reports the following information concerning cash bal- ances and cash transactions for the month of September: Cash balance per bank statement as of September 30 was $20,893.25. 2 Two.debit memoranda accompanied the bank statement: one for $10 was for service charges for the month; the other for $64.60 was attached to an NSF check from A. Smith. 1 Istlon 3 Included with the bank statement was $69 credit memorandum for interest earned on the bank account in September. 4 The paid checks returned with the September bank statement disclosed an error in Daytona's cash records. Check no. 851 for $77.44 for telephone expense had erroneously been listed in the cash payments journal as $44.77. 5 A collection charge for $26.00 (not applicable to Daytona) was erroneously de- ducted from the account by the bank. Notice that this was the bank's error. 6 Cash receipts of September 30 amounting to $585.25 were mailed to the…arrow_forward28 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_forward
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