FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Question 14
On April 2, Granger Sales decides to establish a $125.00 petty cash fund to relieve the
burden on Accounting.
(a) Journalize the establishment of the fund.
(b) On April 10, the petty cash fund has receipts for mail and postage of $43.50,
contributions and donations of
$29.50, meals and entertainment of $38.25, and $13.55 in cash. Journalize the
replenishment of the fund.
(c) On April 11, Granger Sales decides to increase petty cash to $200.00. Journalize this
event.
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- 1. Prepare a general journal entry to record establishing the petty cash fund. 2. Prepare a summary of petty cash payments. 3. Prepare the general journal entry to record the reimbursement and the decrease of the fund.arrow_forwardPetty Cash Fund Entries Journalize the entries to record the following: Check is issued to establish a petty cash fund of $600. The amount of cash in the petty cash fund is now $198. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $233; miscellaneous selling expense, $96; miscellaneous administrative expense, $60. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $600, record the discrepancy in the cash short and over account.) a. Journalize the entry to establish the petty cash fund. fill in the blank b45865f5d05b007_2 fill in the blank b45865f5d05b007_4 b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank. fill in the blank 44236403e05a042_2 fill in the blank 44236403e05a042_3 fill in the blank 44236403e05a042_5 fill in the blank…arrow_forwardBlake Company established a petty cash fund in the amount of $400. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $215 in cash. If the company records both the disbursements and replenishments to the fund, what effect will replenishing the fund have on total assets and expenses? A. B. C. D. Total Assets -$ 180 -$ 185 -$ 185 -$ 180 Multiple Choice O Option A Option D Option B Option C Expenses +$ 185 +$ 185 +$ 180 +$ 180arrow_forward
- 1. Brooks Agency set up a petty cash fund for $140. At the end of the current period, the fund contained $37 and had the following receipts: entertainment, $48, postage, $28; and printing, $27. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period. 2. Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period. View transaction list Journal entry worksheet < 1 2 Record the establishment of the petty cash fund. Note: Enter debits before credits. Transaction 1a General Journal Debit Credit Record entry Clear entry View general journalarrow_forwardOn April 2, Granger Sales decides to establish a $280 petty cash fund to relieve the burden on Accounting. a. Journalize the establishment of the fund. Apг. 2arrow_forwardOvy 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 boxarrow_forward
- 4. Robinson Legal Services, Inc. established a $220 petty cash fund. During the month, the fund was used to pay for the following expenditures: Petty Cash Ticket No. 1 2 3 4 5 Item Account Debited Delivery of programs to customers Delivery Expense Mail package Postage Expense Printing Expense Miscellaneous Expense Office Supplies DATE Newsletter Key to closet Copier paper (a) Record the journal entry to create the petty cash fund. (b) At month-end, the bookkeeper counted the cash in the petty cash box. There was $40. Record the journal entry (entries) needed at the end of the month to replenish the fund. (c) If the bookkeeper wanted to decrease the petty cash fund to $120, what journal entry would he record? DATE ACCOUNT ACCOUNT DEBIT Amount $ 20 10 25 40 70 DEBIT CREDIT CREDITarrow_forwardPalmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $85 in cash along with receipts for the following expenditures: postage, $41; transportation - in, $11; delivery expenses, $13; and miscellaneous expenses, $30. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare the entry to establish the fund on January 1. Prepare the entry to reimburse the fund on January 8 under two separate situations: To reimburse the fund. To reimburse the fund and increase it to $230. Hint: Make two entriesarrow_forwardOn September 1, French company has decided to initiate a petty cash fund in the amount of $800. Prepare journal entries using this information for the following transactions for questions 1-5. On September 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. What is the correct journal entry?arrow_forward
- Ht.11.arrow_forwardSwifty Company established a petty cash fund on May 1, cashing a check for $125.00. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $5.55. Receipts: delivery expense $30.80, postage expense $37.75, and miscellaneous expense $50.90. July 1: Cash in fund $3.00. Receipts: delivery expense $19.95, entertainment expense $47.05, and miscellaneous expense $55.00. On July 10, Swifty increased the fund from $125.00 to $155.Prepare journal entries for Swifty 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. Round answers to 2 decimal places, e.g. 52.75. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date May 1June 1July 1July 10 enter an account title enter a debit amount…arrow_forwardThe custodian of a $600 petty cash fund discovers that the fund has $ 112.50 in coins and currency plus $ 472.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:arrow_forward
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