Journal entries in the books of BM Center during the month of March.

Question

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Answer 1

Question

Chapter 6, Problem 3PSB

1.

To determine

To prepare: Journal entries in the books of BM Center during the month of March.

1.

Expert Solution

Explanation of Solution

To establish the petty cash fund.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.5	Petty Cash		250
	Cash			250
	(To establish petty cash fund)

Petty cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $250.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, cash account credited by $250.

2.

To determine

To prepare: Petty cash payments report for the month of March.

2.

Expert Solution

Explanation of Solution

Petty cash payment report contains all payments made out of the petty cash fund.

Petty cash report is shown below for March month:

BM Center
Petty Cash Payment Report (for March)
Date	Particulars	Amount ($)	Amount ($)
	Delivery expenses
Mar.11	Delivery of customer’s merchandise		10.75

	Mileage expenses
Mar.30	Reimbursement for mileage		56.80

	Postage expenses
Mar.28	Paid postage		18

	Merchandise inventory ( transportation-in)
Mar. 6	COD charges on purchases	12.50
Mar. 27	COD charges on purchases	45.10	57.60

	Office supplies expenses
Mar.12	Purchased file folders	14.13
Mar.14	Reimbursement for office supplies	11.65
Mar.18	Purchased paper	20.54	46.32
	Total		189.47

Total expenses ascertained are $189.47.

3.

To determine

To Prepare: Journal entries for above part 2 to (a) reimburse and (b) increase the fund amount.

3.

Expert Solution

Explanation of Solution

(a)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Delivery expenses		10.75
	Mileage expenses		56.80
	Postage expenses		18
	Merchandise inventory		57.60
	Office supplies expenses		46.32
	Cash over and short			1
	Cash			188.47
	(To reimburse the petty cash fund )

All expenses have debit balance. Expenses increase and get debited. So, given in the question delivery, Mileage, postage, merchandise inventory and office supplies expenses $10.75, $56.80, $18, $57.60 and $46.32 respectively are debited.
$61.53 is remained in the fund out of total petty cash fund $250. This implies $188.47 ($250-$61.53) should have spent. Since actual expenses are $189.47and cash available to spend is $188.47, difference of this $1 is credited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $188.47.

(b)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Petty Cash		50
	Cash			50
	(To increase petty cash fund )

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

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Answer 2

Question

Chapter 6, Problem 3PSB

1.

To determine

To prepare: Journal entries in the books of BM Center during the month of March.

1.

Expert Solution

Explanation of Solution

To establish the petty cash fund.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.5	Petty Cash		250
	Cash			250
	(To establish petty cash fund)

Petty cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $250.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, cash account credited by $250.

2.

To determine

To prepare: Petty cash payments report for the month of March.

2.

Expert Solution

Explanation of Solution

Petty cash payment report contains all payments made out of the petty cash fund.

Petty cash report is shown below for March month:

BM Center
Petty Cash Payment Report (for March)
Date	Particulars	Amount ($)	Amount ($)
	Delivery expenses
Mar.11	Delivery of customer’s merchandise		10.75

	Mileage expenses
Mar.30	Reimbursement for mileage		56.80

	Postage expenses
Mar.28	Paid postage		18

	Merchandise inventory ( transportation-in)
Mar. 6	COD charges on purchases	12.50
Mar. 27	COD charges on purchases	45.10	57.60

	Office supplies expenses
Mar.12	Purchased file folders	14.13
Mar.14	Reimbursement for office supplies	11.65
Mar.18	Purchased paper	20.54	46.32
	Total		189.47

Total expenses ascertained are $189.47.

3.

To determine

To Prepare: Journal entries for above part 2 to (a) reimburse and (b) increase the fund amount.

3.

Expert Solution

Explanation of Solution

(a)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Delivery expenses		10.75
	Mileage expenses		56.80
	Postage expenses		18
	Merchandise inventory		57.60
	Office supplies expenses		46.32
	Cash over and short			1
	Cash			188.47
	(To reimburse the petty cash fund )

All expenses have debit balance. Expenses increase and get debited. So, given in the question delivery, Mileage, postage, merchandise inventory and office supplies expenses $10.75, $56.80, $18, $57.60 and $46.32 respectively are debited.
$61.53 is remained in the fund out of total petty cash fund $250. This implies $188.47 ($250-$61.53) should have spent. Since actual expenses are $189.47and cash available to spend is $188.47, difference of this $1 is credited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $188.47.

(b)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Petty Cash		50
	Cash			50
	(To increase petty cash fund )

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

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Answer 3

Question

Chapter 6, Problem 3PSB

1.

To determine

To prepare: Journal entries in the books of BM Center during the month of March.

1.

Expert Solution

Explanation of Solution

To establish the petty cash fund.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.5	Petty Cash		250
	Cash			250
	(To establish petty cash fund)

Petty cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $250.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, cash account credited by $250.

2.

To determine

To prepare: Petty cash payments report for the month of March.

2.

Expert Solution

Explanation of Solution

Petty cash payment report contains all payments made out of the petty cash fund.

Petty cash report is shown below for March month:

BM Center
Petty Cash Payment Report (for March)
Date	Particulars	Amount ($)	Amount ($)
	Delivery expenses
Mar.11	Delivery of customer’s merchandise		10.75

	Mileage expenses
Mar.30	Reimbursement for mileage		56.80

	Postage expenses
Mar.28	Paid postage		18

	Merchandise inventory ( transportation-in)
Mar. 6	COD charges on purchases	12.50
Mar. 27	COD charges on purchases	45.10	57.60

	Office supplies expenses
Mar.12	Purchased file folders	14.13
Mar.14	Reimbursement for office supplies	11.65
Mar.18	Purchased paper	20.54	46.32
	Total		189.47

Total expenses ascertained are $189.47.

3.

To determine

To Prepare: Journal entries for above part 2 to (a) reimburse and (b) increase the fund amount.

3.

Expert Solution

Explanation of Solution

(a)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Delivery expenses		10.75
	Mileage expenses		56.80
	Postage expenses		18
	Merchandise inventory		57.60
	Office supplies expenses		46.32
	Cash over and short			1
	Cash			188.47
	(To reimburse the petty cash fund )

All expenses have debit balance. Expenses increase and get debited. So, given in the question delivery, Mileage, postage, merchandise inventory and office supplies expenses $10.75, $56.80, $18, $57.60 and $46.32 respectively are debited.
$61.53 is remained in the fund out of total petty cash fund $250. This implies $188.47 ($250-$61.53) should have spent. Since actual expenses are $189.47and cash available to spend is $188.47, difference of this $1 is credited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $188.47.

(b)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Petty Cash		50
	Cash			50
	(To increase petty cash fund )

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

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Answer 4

Question

Chapter 6, Problem 3PSB

1.

To determine

To prepare: Journal entries in the books of BM Center during the month of March.

1.

Expert Solution

Explanation of Solution

To establish the petty cash fund.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.5	Petty Cash		250
	Cash			250
	(To establish petty cash fund)

Petty cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $250.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, cash account credited by $250.

2.

To determine

To prepare: Petty cash payments report for the month of March.

2.

Expert Solution

Explanation of Solution

Petty cash payment report contains all payments made out of the petty cash fund.

Petty cash report is shown below for March month:

BM Center
Petty Cash Payment Report (for March)
Date	Particulars	Amount ($)	Amount ($)
	Delivery expenses
Mar.11	Delivery of customer’s merchandise		10.75

	Mileage expenses
Mar.30	Reimbursement for mileage		56.80

	Postage expenses
Mar.28	Paid postage		18

	Merchandise inventory ( transportation-in)
Mar. 6	COD charges on purchases	12.50
Mar. 27	COD charges on purchases	45.10	57.60

	Office supplies expenses
Mar.12	Purchased file folders	14.13
Mar.14	Reimbursement for office supplies	11.65
Mar.18	Purchased paper	20.54	46.32
	Total		189.47

Total expenses ascertained are $189.47.

3.

To determine

To Prepare: Journal entries for above part 2 to (a) reimburse and (b) increase the fund amount.

3.

Expert Solution

Explanation of Solution

(a)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Delivery expenses		10.75
	Mileage expenses		56.80
	Postage expenses		18
	Merchandise inventory		57.60
	Office supplies expenses		46.32
	Cash over and short			1
	Cash			188.47
	(To reimburse the petty cash fund )

All expenses have debit balance. Expenses increase and get debited. So, given in the question delivery, Mileage, postage, merchandise inventory and office supplies expenses $10.75, $56.80, $18, $57.60 and $46.32 respectively are debited.
$61.53 is remained in the fund out of total petty cash fund $250. This implies $188.47 ($250-$61.53) should have spent. Since actual expenses are $189.47and cash available to spend is $188.47, difference of this $1 is credited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $188.47.

(b)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Petty Cash		50
	Cash			50
	(To increase petty cash fund )

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

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Answer 5

Chapter 6, Problem 3PSB

1.

To determine

To prepare: Journal entries in the books of BM Center during the month of March.

1.

Expert Solution

Explanation of Solution

To establish the petty cash fund.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.5	Petty Cash		250
	Cash			250
	(To establish petty cash fund)

Petty cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $250.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, cash account credited by $250.

2.

To determine

To prepare: Petty cash payments report for the month of March.

2.

Expert Solution

Explanation of Solution

Petty cash payment report contains all payments made out of the petty cash fund.

Petty cash report is shown below for March month:

BM Center
Petty Cash Payment Report (for March)
Date	Particulars	Amount ($)	Amount ($)
	Delivery expenses
Mar.11	Delivery of customer’s merchandise		10.75

	Mileage expenses
Mar.30	Reimbursement for mileage		56.80

	Postage expenses
Mar.28	Paid postage		18

	Merchandise inventory ( transportation-in)
Mar. 6	COD charges on purchases	12.50
Mar. 27	COD charges on purchases	45.10	57.60

	Office supplies expenses
Mar.12	Purchased file folders	14.13
Mar.14	Reimbursement for office supplies	11.65
Mar.18	Purchased paper	20.54	46.32
	Total		189.47

Total expenses ascertained are $189.47.

3.

To determine

To Prepare: Journal entries for above part 2 to (a) reimburse and (b) increase the fund amount.

3.

Expert Solution

Explanation of Solution

(a)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Delivery expenses		10.75
	Mileage expenses		56.80
	Postage expenses		18
	Merchandise inventory		57.60
	Office supplies expenses		46.32
	Cash over and short			1
	Cash			188.47
	(To reimburse the petty cash fund )

All expenses have debit balance. Expenses increase and get debited. So, given in the question delivery, Mileage, postage, merchandise inventory and office supplies expenses $10.75, $56.80, $18, $57.60 and $46.32 respectively are debited.
$61.53 is remained in the fund out of total petty cash fund $250. This implies $188.47 ($250-$61.53) should have spent. Since actual expenses are $189.47and cash available to spend is $188.47, difference of this $1 is credited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $188.47.

(b)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Petty Cash		50
	Cash			50
	(To increase petty cash fund )

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

Answer 6

Chapter 6, Problem 3PSB

1.

To determine

To prepare: Journal entries in the books of BM Center during the month of March.

1.

Expert Solution

Explanation of Solution

To establish the petty cash fund.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.5	Petty Cash		250
	Cash			250
	(To establish petty cash fund)

Petty cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $250.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, cash account credited by $250.

Answer 7

Chapter 6, Problem 3PSB

1.

To determine

To prepare: Journal entries in the books of BM Center during the month of March.

Answer 8

1.

Expert Solution

Explanation of Solution

To establish the petty cash fund.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.5	Petty Cash		250
	Cash			250
	(To establish petty cash fund)

Petty cash is an asset account, when it increases it gets debited. Here, cash is added to petty cash so; petty cash account is increased and debited by $250.
Cash is also an asset account. Cash has gone out of the bank so it is decreased. Hence, cash account credited by $250.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

2.

To determine

To prepare: Petty cash payments report for the month of March.

2.

Expert Solution

Explanation of Solution

Petty cash payment report contains all payments made out of the petty cash fund.

Petty cash report is shown below for March month:

BM Center
Petty Cash Payment Report (for March)
Date	Particulars	Amount ($)	Amount ($)
	Delivery expenses
Mar.11	Delivery of customer’s merchandise		10.75

	Mileage expenses
Mar.30	Reimbursement for mileage		56.80

	Postage expenses
Mar.28	Paid postage		18

	Merchandise inventory ( transportation-in)
Mar. 6	COD charges on purchases	12.50
Mar. 27	COD charges on purchases	45.10	57.60

	Office supplies expenses
Mar.12	Purchased file folders	14.13
Mar.14	Reimbursement for office supplies	11.65
Mar.18	Purchased paper	20.54	46.32
	Total		189.47

Total expenses ascertained are $189.47.

Answer 13

2.

To determine

To prepare: Petty cash payments report for the month of March.

Answer 14

2.

Expert Solution

Explanation of Solution

Petty cash payment report contains all payments made out of the petty cash fund.

Petty cash report is shown below for March month:

BM Center
Petty Cash Payment Report (for March)
Date	Particulars	Amount ($)	Amount ($)
	Delivery expenses
Mar.11	Delivery of customer’s merchandise		10.75

	Mileage expenses
Mar.30	Reimbursement for mileage		56.80

	Postage expenses
Mar.28	Paid postage		18

	Merchandise inventory ( transportation-in)
Mar. 6	COD charges on purchases	12.50
Mar. 27	COD charges on purchases	45.10	57.60

	Office supplies expenses
Mar.12	Purchased file folders	14.13
Mar.14	Reimbursement for office supplies	11.65
Mar.18	Purchased paper	20.54	46.32
	Total		189.47

Total expenses ascertained are $189.47.

Answer 15

2.

Expert Solution

Answer 16

2.

Expert Solution

Answer 17

Expert Solution

Answer 18

3.

To determine

To Prepare: Journal entries for above part 2 to (a) reimburse and (b) increase the fund amount.

3.

Expert Solution

Explanation of Solution

(a)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Delivery expenses		10.75
	Mileage expenses		56.80
	Postage expenses		18
	Merchandise inventory		57.60
	Office supplies expenses		46.32
	Cash over and short			1
	Cash			188.47
	(To reimburse the petty cash fund )

All expenses have debit balance. Expenses increase and get debited. So, given in the question delivery, Mileage, postage, merchandise inventory and office supplies expenses $10.75, $56.80, $18, $57.60 and $46.32 respectively are debited.
$61.53 is remained in the fund out of total petty cash fund $250. This implies $188.47 ($250-$61.53) should have spent. Since actual expenses are $189.47and cash available to spend is $188.47, difference of this $1 is credited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $188.47.

(b)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Petty Cash		50
	Cash			50
	(To increase petty cash fund )

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.

Answer 19

3.

To determine

To Prepare: Journal entries for above part 2 to (a) reimburse and (b) increase the fund amount.

Answer 20

3.

Expert Solution

Explanation of Solution

(a)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Delivery expenses		10.75
	Mileage expenses		56.80
	Postage expenses		18
	Merchandise inventory		57.60
	Office supplies expenses		46.32
	Cash over and short			1
	Cash			188.47
	(To reimburse the petty cash fund )

All expenses have debit balance. Expenses increase and get debited. So, given in the question delivery, Mileage, postage, merchandise inventory and office supplies expenses $10.75, $56.80, $18, $57.60 and $46.32 respectively are debited.
$61.53 is remained in the fund out of total petty cash fund $250. This implies $188.47 ($250-$61.53) should have spent. Since actual expenses are $189.47and cash available to spend is $188.47, difference of this $1 is credited to the ‘Cash over and short’ account.
Cash is an asset account. Cash has gone out of the bank so it is decreased. Hence, cash is credited with $188.47.

(b)

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
Mar.31	Petty Cash		50
	Cash			50
	(To increase petty cash fund )

Petty cash is an asset. When it increases it gets debited. So, here petty cash increases by $50. Thus petty cash account gets debited.
Cash is also an asset. When it decreases it gets credited. So, here cash decreases. Thus cash account gets credited.