On March 20, Terrell's petty cash fund of $100 is replenished when the fund contains $7 in cash and receipts for postage $52, freight-out $26, and travel expense $10. Prepare the journal entry to record the replenishment of the petty cash fund
On March 20, Terrell's petty cash fund of $100 is replenished when the fund contains $7 in cash and receipts for postage $52, freight-out $26, and travel expense $10. Prepare the journal entry to record the replenishment of the petty cash fund
Unlock all answers
Related questions
Suppose that on September 1, Lavene Motors opens a new showroomin Napanee, Ontario, and creates a petty cash fund with an imprestbalance of $500. During, September, Lisa Manfield, the fundcustodian, signs the petty cash tickets shown below.
TicketNo. Item Amount
1 Courier for packagereceived $49.67
2 Refreshments for showroomopening $101.00
3 Computerdisks $88.07
4 Officesupplies $7.50
5 Dinner money for sales managerentertainment $87.50
On September 30, prior to replenishment, the fund contains thesetickets plus $161.34. The accounts affected by petty cash paymentsare Office Supplies Expenses, Entertainment expenses, and DeliveryExpenses.
1. Explain the characteristics and the internal control features of animprest fund.
2. On September 30, how much cash should this petty cash fund holdbefore it is replenished?
3. Make the general journal entries to (A) create the fund and (B)replenish it. Include explanation.
4. Due to the risk of robbery, make the entry on October 1 to decreasethe fund balance to $400. Include explanation.
Req.1
Req. 2
Req. 3. (a) (creation ofthe petty cash fund)
General Journal | |||||
DATE | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
Ù
Ù
Ù
Ù (b) (replenishment of the petty cash fund)
General Journal | |||||
DATE | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
(continued)P8-8B
Req. 4 (decreasing the amount of the petty cashfund)
General Journal | |||||
DATE | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
