Recording Petty Cash Transactions} OBJECTIVE 34 SCB Inc. had a balance of ($ 400) in cash in
Question:
Recording Petty Cash Transactions}
OBJECTIVE 34 SCB Inc. had a balance of \(\$ 400\) in cash in its petty cash fund at the beginning of September. The following transactions took place in September:
a. On September 4 , the custodian paid \(\$ 43\) out of petty cash for new stationery on which the company president's name appeared prominently. This is considered supplies.
b. On September 11, the custodian paid \(\$ 75\) out of petty cash for maintenance manuals for some equipment. This is a maintenance expense.
c. On September 15 , the custodian paid \(\$ 33\) out of petty cash for transportation-in.
d. On September 23 , the custodian paid \(\$ 46\) out of petty cash to have documents delivered to the lawyers who were defending the firm in a lawsuit. This is considered an other expense.
e. On September 27 , the custodian paid \(\$ 123\) out of petty cash to reimburse the president for costs he had incurred when bad weather prevented the company jet from landing to pick him up after a meeting. This is a travel expense.
f. On September 30, the custodian submitted receipts for the above expenditures and a cheque was drawn for the amount to replenish the fund.
\section*{Required:}
Prepare any journal entries to be made by the corporation to record these transactions.
Problem
Step by Step Answer:
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone