Concept explainers
1.
Introduction: Petty cash of the company is the cash reserved by the company for small amount of transactionsin other words Petty cash fund refers to the small portion of the cash fund used or to manage small expenses where payment cannot be made by cheques all the time.
To prepare: The
1.

Answer to Problem 3PSA
The journal entry established the petty cash is prepared below.
Explanation of Solution
1. Journal entry of petty cash in the last month of company’s fiscal year is as following:
Date | Particulars | Debit $ | Credit $ |
2 Feb | Petty cash | 400.00 | |
To Cash | 400.00 | ||
(Being petty cash fund recorded) |
2
Introduction: Petty cash of the company is the cash reserved by the company for small amount of transactions in other words Petty cash fund refers to the small portion of the cash fund used or to manage small expenses where payment cannot be made by cheques all the time.
To prepare:Petty cash payment report for the month of February..
2

Answer to Problem 3PSA
The journal entry to establish the petty cash is prepared below.
Explanation of Solution
Journal entry of petty cash payment report of the company is as follows:
Date | Particulars | Debit $ | Credit $ |
23 Feb | Delivery of customer’s merchandise | 20.00 | |
To Cash | 20.00 | ||
(Being Delivery expenses recorded) | |||
14 Feb | Reimbursement for mileage | 68.00 | |
To Cash | 68.00 | ||
(Being mileage expenses recorded) | |||
12 Feb | Express delivery of contract | 7.95 | |
27 Feb | Purchased postage stamps | 54.00 | |
To Cash | 61.95 | ||
(Being postage expenses recorded) | |||
9 Feb | COD charges on purchases | 32.50 | |
25 Feb | COD charges on purchase | 13.10 | |
To Cash | 45.60 | ||
(Being Merchandise inventory recorded) | |||
5 Feb | Purchased paper for copier | 14.15 | |
Purchased stationery | 67.77 | ||
To Cash | 81.92 | ||
(Being office supplies expenses recorded) | |||
3.
Introduction: Petty cash of the company is the cash reserved by the company for small amount of transactions in other words Petty cash fund refers to the small portion of the cash fund used or to manage small expenses where payment cannot be made by cheques all the time.
To prepare: The journal entry to reimburse and increase the fund account.
3.

Answer to Problem 3PSA
The journal entry to reimburse and increase the fund account is prepared below.
Explanation of Solution
Journal entries for reimbursement and increase in fund amount are as follows:
a. | 28 Feb | Delivery expenses | 20.00 | |
Mileage expenses | 68.00 | |||
Postage expenses | 61.95 | |||
Merchandise Inventory | 45.60 | |||
Office Supplies expenses | 81.92 | |||
Cash over and short | 2.11 | |||
To Cash | 279.58 | |||
(Being petty cash fund reimbursed) | ||||
b. | 28 Feb | Petty cash | 100.00 | |
To Cash | 100.00 | |||
(Being petty cash fund increased to $500) |
Want to see more full solutions like this?
Chapter 6 Solutions
FINANCIAL ACCT-CONNECT
- Financial Accountingarrow_forwardsubject: general accounting questionarrow_forwardNicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $ 40,500 March 1-March 30 wages March 30 6,550 March 1-March 30 rent Stock issuance costs March 30 2,850 April 1-May 30 wages Note: Leave no answer blank. Enter zero if applicable. April 1 May 30 24,000 16,375 a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Start-up costs Organizational expendituresarrow_forward
- What is the return on investment of this financial accounting question?arrow_forwardLast Chance Mine (LCM) purchased a coal deposit for $2,918,300. It estimated it would extract 18,950 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.24 million, $13 million, and $11 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($11,400), $550,000, and $502,500, respectively. In years 1-3, LCM extracted 19,950 tons of coal as follows: (1) Tons of Coal 18,950 Depletion (2) Basis (2)(1) Rate $2,918,300 $154.00 Tons Extracted per Year Year 1 4,500 Year 2 8,850 Year 3 6,600 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Percentage Depletion Year 1 Year 2 Year 3 $ 0arrow_forwardCan you please solve this accounting issue without use Ai?arrow_forward
- Brown Company estimates that monthly sales will be as follows. January $100,000 February 150,000 March 180,000 Historical trends indicate that 40 percent of sales are collected during the month of sale, 50 percent are collected in the month following the sale, and 10 percent are collected two months after the sale. Brown's accounts receivable balance as of December 31 totals $80,000 ($72,000 from December's sales and $8,000 from November's sales). The amount of cash Brown can expect to collect during the month of January is?arrow_forwardgiven answer General accounting questionarrow_forwardHow many units were completed during the period on these accounting question?arrow_forward
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage


