The petty cash fund of the Wee Ones Agency was established on May 1, 2020, at $75.
Question:
The petty cash fund of the Wee Ones Agency was established on May 1, 2020, at $75. At the end of the month, the fund contained $13 and had the following receipts: film rentals, $19; refreshments for meetings, $23 (both expenditures to be classified as Entertainment Expense); postage, $7; and printing, $13.
1. Prepare the journal entry to record the establishment of the fund.
2. Prepare a summary of the petty cash payments similar to Exhibit 7.3, and then record the reimbursement on May 31.
3. Explain when the Petty Cash account would be credited in a journal entry.
Exhibit 7.3
Transcribed Image Text:
DEMANO Petty Cash Payments Report November 2020 Receipts: Office maintenance Nov. 2 Washing windows. 17 Washing windows. $10.00 10.00 $46.50 27 Computer repairs. 26.50 Transportation-in $ 6.75 Nov. 5 Delivery of merchandise purchased. 8.30 20 Delivery of merchandise purchased. 15.05 Delivery expense Nov. 28 Customer's package delivered.. 5.00 Office supplies Nov. 15 Purchased office supplies. Total receipts. Fund total. 4.75 $71.30 $75.00 Less: Cash remaining 2.20 $72.80 Equals: Cash required to replenish petty cash.. Cash over/(short). ($ 1.50)
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Related Book For
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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