Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 8, Problem 3BP
1)
To determine
To record the
2)
To determine
To prepare a petty cash payment report for the month of March.
3)
To determine
To record the journal entry.
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Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. Palmona uses the perpetual system in accounting for merchandise inventory.
The journal entry to reimburse the petty cash fund on January 8 will include:
A.
Credit to Petty Cash for $162
B.
Debit to Cash short and over for $ 38
C.
Credit to Merchandise Inventory for $29
D.
Debit miscellaneous expenses for $43
Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to
account for merchandise inventory.
February 2 Wrote a $350 check to establish a petty cash fund.
February 5
February 9
Purchased paper for the copier for $16.55 that is immediately used.
Paid $34.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These
costs are added to merchandise inventory.
Paid $8.85 postage to deliver a contract to a client.
February 12
February 14 Reimbursed Adina Sharon, the manager, $65 for mileage on her car.
February 20 Purchased office paper for $69.77 that is immediately used.
February 23 Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination.
February 25 Paid $11.60 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These
costs are added to merchandise inventory.
February 27 Paid $52 for postage…
Blues Music Center had the following petty cash transactions in March of the current year. Blues uses the perpetual system to account for merchandise inventory. Mar. 5 Wrote a $250 check to establish a petty cash fund. 6 Paid $12.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 11 Paid $10.75 in delivery expense on merchandise sold to a customer, terms FOB destination. 12 Purchased office file folders for $14.13 that are immediately used. 14 Reimbursed Bob Geldof, the manager, $11.65 for office supplies purchased and used. 18 Purchased office printer paper for $20.54 that is immediately used. 27 Paid $45.10 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These costs are added to merchandise inventory. 28 Paid postage expense of $18. 30 Reimbursed Geldof $56.80 for mileage expense. 31 Cash of $61.53 remained in the fund. Sorted the…
Chapter 8 Solutions
Principles of Financial Accounting.
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQ
Ch. 8 - Which of the following assetsinventory, building,...Ch. 8 - What is a petty cash receipt? Who should sign it?Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 1QSCh. 8 - COSO internal control components C1 COSO lists...Ch. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 1APCh. 8 - Prob. 2APCh. 8 - Prob. 3APCh. 8 - Prob. 4APCh. 8 - Prob. 5APCh. 8 - Prob. 1BPCh. 8 - Prob. 2BPCh. 8 - Prob. 3BPCh. 8 - Prob. 4BPCh. 8 - Prob. 8SPCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Review the opening feature of this chapter that...Ch. 8 - Prob. 6BTN
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