A small company maintains a petty cash fund for minor expenditures. The followingtransactions occurred in June and July 2014:a. The fund was established in the amount of $600.00 on June 1 from the proceeds ofcheck no. 30.b. On June 30, the petty cash fund had cash of $92.76 and the following receipts on hand:postage, $240.00; supplies, $149.64; delivery service, $74.40; and rubber stamp, $43.20.Check no. 1577 was drawn to replenish the fund.c. On July 31, the petty cash fund had cash of $132.36 and the following receipts onhand: postage, $205.20; supplies, $197.04; and delivery service, $38.40. The petty cashcustodian could not account for the shortage. Check no. 1628 was written to replenish thefund. Required: 1. Prepare the journal entries necessary to record each of these transactions 2. Additionally the company decided to decrease the petty cash limit from $600 to $550. prepare the journal entry to reflect this change.

A small company maintains a petty cash fund for minor expenditures. The followingtransactions occurred in June and July 2014:a. The fund was established in the amount of $600.00 on June 1 from the proceeds ofcheck no. 30.b. On June 30, the petty cash fund had cash of $92.76 and the following receipts on hand:postage, $240.00; supplies, $149.64; delivery service, $74.40; and rubber stamp, $43.20.Check no. 1577 was drawn to replenish the fund.c. On July 31, the petty cash fund had cash of $132.36 and the following receipts onhand: postage, $205.20; supplies, $197.04; and delivery service, $38.40. The petty cashcustodian could not account for the shortage. Check no. 1628 was written to replenish thefund. Required: 1. Prepare the journal entries necessary to record each of these transactions 2. Additionally the company decided to decrease the petty cash limit from $600 to $550. prepare the journal entry to reflect this change.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 2PA: On May 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare...

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On May 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 $80. 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 decreased to $1,000. E. On June 30, the petty cash fund needed replenishment as it was month-end. The following are the receipts: Auto Expense $114, Supplies $75, Postage Expense $50, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
On June 1 French company has decided to initiate a petty cash fund in the amount of $800. Prepare journal entries for the following transactions: A. On June 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $37, Supplies $124, Postage Expense $270, Repairs and Maintenance Expense $168, Miscellaneous Expense $149. The cash on hand at this time was $48. B. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $18, Supplies $175, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $220. C. On June 23, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $251, Supplies $88, Postage Expense $63, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $20. D. On June 29, the company determined that the petty cash fund needed to be increased to $1,000. E. On June 30, the petty cash fund needed replenishment, as it was month end. The following are the receipts: Auto Expense $18, Supplies $175, Postage Expense $50, Repairs and Maintenance Expense $269, Miscellaneous Expense $59. The cash on hand at this time was $437.
A small company maintains a petty cash fund for minor expenditures. In June and July 2014, the following transactions took place:a. The fund was established in the amount of $100.00 on June 1 from the proceeds of check no. 2707.b. On June 30, the petty cash fund had cash of $15.46 and the following receipts on hand: postage, $40.00; supplies, $24.94; delivery service, $12.40; and rubber stamp, $7.20. Check no. 2778 was drawn to replenish the fund.c. On July 31, the petty cash fund had cash of $22.06 and these receipts on hand: postage, $34.20; supplies, $32.84; and delivery service, $6.40. The petty cash custodian could not account for the shortage. Check no. 2847 was drawn to replenish the fund. Prepare the journal entries necessary to record each transaction.
E9B. A small company maintains a petty cash fund for minor expenditures. In June and July 2014, the following transactions took place: a. The fund was established in the amount of $100.00 on June 1 from the proceeds of check no. 2707. b. On June 30, the petty cash fund had cash of $15.46 and the following receipts on hand: postage, $40.00; supplies, $24.94; delivery service, $12.40; and rubber stamp, $7.20. Check no. 2778 was drawn to replenish the fund. c. On July 31, the petty cash fund had cash of $22.06 and these receipts on hand: post- age, $34.20; supplies, $32.84; and delivery service, $6.40. The petty cash custodian could not account for the shortage. Check no. 2847 was drawn to replenish the fund. Prepare the journal entries necessary to record each transaction.
On July 1, 2014, Acting Company established an imprest (petty cash) fund in the amount of $800.00 in cash from a check drawn for the purpose of establishing the fund. On July 31, the petty cash fund has cash of $62.84 and the following receipts on hand: for merchandise received $408.60; freight-in, $131.48; laundry service, $168.00; and miscellaneous expense, $29.08. A check was drawn to replenish the fund. On Aug. 31, the petty cash fund has cash of $110.00 and the following receipts on hand: merchandise, $393.68; freight-in, $152.60; laundry service, $168.00; and miscellaneous expense, $15.72. The petty cash custodian is not able to account for the excess cash in the fund. A check is drawn to replenish the fund. Required 1. set up the petty cash fund 2.Calculate how much petty cash was used up/spent during the period (i.e petty cash limit minus cash balance still available in the petty cash tin) 3. total/tally receipts returned for monies spent 4. determine/find difference, if…
Ovy Inc. established a $175 petty cash fund on August 15, 2012. On August 31, 2012, the fund contained receipts for the following: newspaper advertising $62, postage $26, office supplies $47. A cheque was prepared to reimburse the fund and increase the balance to $200.Required:3. Record the journal entry on August 15 to establish the fund.4. Record the journal entry on August 31 assuming there was $35 cash in the petty cash box.5. Record the journal entry on August 31 assuming there was $45 cash in the petty cash box
Skysong Company established a petty cash fund on May 1 for $100. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $2.55. Receipts: delivery expense $27.05, postage expense $38.30, and miscellaneous expense $29.90. July 1: Cash in fund $4.05. Receipts: delivery expense $22.50, entertainment expense $47.50, and miscellaneous expense $25.95. On July 10, Skysong increased the fund from $100 to $130.Prepare journal entries for Skysong Company for May 1, June 1, July 1, and July 10. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a…
Cullumber Company established a petty cash fund on May 1 for $100. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $2.50. July 1: Cash in fund $3.00. Receipts: delivery expense $26.25, postage expense $36.25, and miscellaneous expense $33.00. Receipts: delivery expense $18.75, entertainment expense $46.25, and miscellaneous expense $32.00. On July 10, Cullumber increased the fund from $100 to $130. Prepare journal entries for Cullumber Company for May 1, June 1, July 1, and July 10. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 52.75.)
On July 1, 2014, Acting Company established an imprest (petty Cash) fund in the amount of $800.00 in cash from a check drawn for the purpose of establishing the fund. On July 31 the petty cash fund has cash of $62.84 and the following receipts on hand: for merchandise received, $408.60, freight-in, $131.48; laundry service, $168.00; and miscellaneous expense, $29.08. A check was drawn to replenish the fund. On August 31, the petty cash fund has cash of $110.00 and the following receipts on hand: merchandise, $393.68; freight-in, $152.60; laundry service, $168.00; and miscellaneous expense, $15.72. the petty cash custodian is not able to account for the excess cash in the fund. A check is drawn to replenish the fund. REQUIRED Prepare the journal entries necessary to record each of these transactions. The company uses the periodic inventory system. ACCOUNTING CONNECTION= What are two examples of why a local semiprofessional baseball team might need for an imprest (petty cash) system ?
Brooks Agency set up a petty cash fund for $150. At the end of the current period, the fund contained $28 and had the following receipts: entertainment, $70; postage, $30; and printing, $22. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry._____ a.Fund amount is being reduced._____ b.Fund amount is being increased._____ c.Fund is being eliminated._____ d.Fund is being established.
Havermill Co. establishes a $390 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $87 for Repairs Expense, $165 for merchandise Inventory, and $36 for miscellaneous expenses. The fund has a balance of $102. On October 1, the accountant determines that the fund should be increased by $78. The Journal entry to record the reimbursement of the fund on September 30 includes a: Multiple Choice О Credit to Cash for $102. Credit to Cash for $390. Debit Petty Cash for $288. О Credit to Merchandise Inventory for $165. О Debit to Repairs Expense for $87.
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