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 journal entry established the petty cash.

Question

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Answer 1

Question

Chapter 6, Problem 3PSA

1.

Summary Introduction

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 journal entry established the petty cash.

1.

Expert Solution

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

Summary Introduction

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

Expert Solution

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.

Summary Introduction

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.

Expert Solution

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)

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Nakashima Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $340 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier. 5 Purchased bond paper for the copier for $16.55 that is immediately used. 9 Paid $44.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory. 12 Paid $8.75 postage to express mail a contract to a client. 14 Reimbursed Adina Sharon, the manager, $74 for business mileage on her car. 20 Purchased stationery for $68.77 that is immediately used. 23 Paid a courier $23 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $11.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $51 for postage expenses. 28 The fund had $22.81 remaining in…

Answer 2

Question

Chapter 6, Problem 3PSA

1.

Summary Introduction

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 journal entry established the petty cash.

1.

Expert Solution

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

Summary Introduction

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

Expert Solution

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.

Summary Introduction

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.

Expert Solution

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)

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Answer 3

Question

Chapter 6, Problem 3PSA

1.

Summary Introduction

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 journal entry established the petty cash.

1.

Expert Solution

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

Summary Introduction

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

Expert Solution

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.

Summary Introduction

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.

Expert Solution

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)

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Answer 4

Question

Chapter 6, Problem 3PSA

1.

Summary Introduction

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 journal entry established the petty cash.

1.

Expert Solution

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

Summary Introduction

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

Expert Solution

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.

Summary Introduction

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.

Expert Solution

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)

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Answer 5

Chapter 6, Problem 3PSA

1.

Summary Introduction

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 journal entry established the petty cash.

1.

Expert Solution

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

Summary Introduction

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

Expert Solution

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.

Summary Introduction

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.

Expert Solution

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)

Answer 6

Chapter 6, Problem 3PSA

1.

Summary Introduction

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 journal entry established the petty cash.

1.

Expert Solution

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)

Answer 7

Chapter 6, Problem 3PSA

1.

Summary Introduction

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 journal entry established the petty cash.

Answer 8

1.

Expert Solution

Answer to Problem 3PSA

The journal entry established the petty cash is prepared below.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

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)

Answer 13

2

Summary Introduction

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

Expert Solution

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)

Answer 14

2

Summary Introduction

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..

Answer 15

2

Expert Solution

Answer to Problem 3PSA

The journal entry to establish the petty cash is prepared below.

Answer 16

2

Expert Solution

Answer 17

2

Expert Solution

Answer 18

Expert Solution

Answer 19

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)

Answer 20

3.

Summary Introduction

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.

Expert Solution

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)

Answer 21

3.

Summary Introduction

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.

Answer 22

3.

Expert Solution

Answer to Problem 3PSA

The journal entry to reimburse and increase the fund account is prepared below.

Answer 23

3.

Expert Solution

Answer 24

3.

Expert Solution

Answer 25

Expert Solution

Answer 26

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)

Answer 27

Ch. 6 - List the seven braod principles of internal...Ch. 6 - Prob. 2DQ Ch. 6 - Prob. 3DQ Ch. 6 - Prob. 4DQ Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Concept explainers

Answer to Problem 3PSA

Explanation of Solution

Answer to Problem 3PSA

Explanation of Solution

Answer to Problem 3PSA

Explanation of Solution

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