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. Baby Photography completed the following petty cash transactions duringJuly 2020:Prepared a $500 cheque, cashed it, and turned theproceeds and the petty cash box over to Bob Stuart, theJuly5petty cashier.Paid $46 COD charges on merchandise purchased forresale. Baby Photography uses the perpetual inventory6.method to account for merchandise inventory.11Paid $26 delivery charges on merchandise sold to acustomer.12Purchased file folders, $7618Purchased paper for printer, $27.27Paid $31 COD charges on merchandise purchased forresale.28Purchased stamps, $6030Reimbursed Collin Dodge $134 for business car expenses.31Bob Stuart sorted the petty cash receipts by accountsaffected and exchanged them for a cheque to reimbursethe fund for expenditures. However, there was $88 in cashin the fund. In addition, the size of the petty cash fundwas decreased to $400.Page 525Required1. Prepare a general journal entry to record establishing the petty cashfund.2. Prepare a summary of petty cash payments similar toExhibit 7.3 that has these categories: delivery expense, autoexpense, postage expense, merchandise inventory, and office supplies.3. Prepare the general journal entry to record the reimbursement andthe decrease of the fund.

Journal entry is a primary entry that records the financial transactions initially.

Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Bob Stuart, the July petty cashier. Paid $46 COD charges on merchandise purchased for resale. Baby Photography uses the perpetual inventory method to account for merchandise inventory. 6. 11 Paid $26 delivery charges on merchandise sold to a customer. 12 Purchased file folders, $76 18 Purchased paper for printer, $27.

Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Bob Stuart, the July petty cashier. Paid $46 COD charges on merchandise purchased for resale. Baby Photography uses the perpetual inventory method to account for merchandise inventory. 6. 11 Paid $26 delivery charges on merchandise sold to a customer. 12 Purchased file folders, $76 18 Purchased paper for printer, $27.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter12: Special Journals

Section: Chapter Questions

Problem 4CE: Enter the following transactions in a cash payments journal like the one illustrated in the chapter:...

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