Palmona Co. establishes a $260 petty cash fund on January 1. On January 8, the fund shows $167 in cash along with receipts for the following expenditures: postage, $38; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $27. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $310 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.

Palmona Co. establishes a $260 petty cash fund on January 1. On January 8, the fund shows $167 in cash along with receipts for the following expenditures: postage, $38; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $27. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $310 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 14Q: A journal entry that requires a debit to Accounts Receivable and a credit to Sales goes in which...

See similar textbooks

Similar questions

Describe the posting procedure for a cash payments journal with an Other Accounts Debit column and several special columns, including an Accounts Payable Debit column.
A journal entry that requires a debit to Accounts Receivable and a credit to Sales goes in which special journal?
JOURNALIZING CASH RECEIPTS Enter the following transactions in a general journal:
Journalize each of the following transactions assuming a perpetual inventory system and PST at 8% along with 5% GST. Note: Any available cash discount is taken only on the sale price before taxes. Aug. 1 Purchased $2,100 of merchandise for cash. 2 Purchased $6,900 of merchandise; terms 3/10, n/30. 5 Sold merchandise costing $3,700 for $5,300; terms 2/10, n/30. 12 Paid for the merchandise purchased on August 2. 15 Collected the amount owing from the customer of August 5. 17 Purchased $6,100 of merchandise; terms n/15. 19 Recorded $7,100 of cash sales (cost of sales $5,900). View transaction list Journal entry worksheet 6 7 8 > 1 2 3 4 Record the cash purchase. Note: Enter debits before credits.
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.
Required information Exercise 6-14A (Algo) Effect of petty cash events on the financial statements LO 6-4 [The following information applies to the questions displayed below.] Fresh Foods established a petty cash fund of $350 on January 2. On January 31, the fund contained cash of $166.00 and vouchers for the following cash payments. Maintenance expense Office supplies Transportation expense $72.00 72.00 37.00 The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. Assume the company uses the alternative approach to petty cash expense recognition and replenishment.
When posting the column totals of a cash payments journal, a debit should be posted to a.Unearned Revenue b.Sales Discounts c.Accounts Payable d.Cash
Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the amounts that increase cash. Note: Enter debits before credits. Date General Journal Debit Credit October 31, 2021 Cash Record entry Clear entry View general journal
Journal entries . Cash Ledger Account
Describe and use the cash payments journal. What steps are followed in posting from cash payments journal to the accounts payable ledger?
It is the basis for the preparation of Journal Entry Voucher for the final recording in the cash disbursement journal. A. Report of disbursement B. Cash disbursement record C. Check disbursement journal D. Cash journal
20 A credit to the account Cash-MDS Regular will most likely be recorded in what journal? Group of answer choices Check Disbursements Journal Special Journal Cash Disbursements Journal General Journal