1. Chi Han records all incoming customer cash receipts for her employer and posts the customer pay- 2. At Tico Company, Julia and Justine alternate lunch hours. Julia is the petty cash custodian, but if 3. Nori Nozumi posts all patient charges and payments at the Hopeville Medical Clinic. Each night Nori 4. Benedict Shales prides himself on hiring quality workers who require little supervision. As office 5. Carla Farah's manager has told her to reduce costs. Cala decides to raise the deductible on the plant's Problem 6-1A Analyzing internal control C1 ments to their respective accounts. someone needs petty cash when he is at lunch, Jose fills in as custodian backs up the computerized accounting system to a tape and stores the tape in a locked file at her desk manager, Benedict gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work. property insurance from $5,000 to $10,000. This cuts the property insurance premium in half. In a related move, she decides that bonding the plant's employees is a waste of money since the company has not experienced any losses due to employee theft. Cala saves the entire amount of the bonding insurance premium by dropping the bonding insurance Problem 6-2A Establish, reimburse, and increase petty cash P2 Nakashima Gallery had the following petty cash transactions in February of the current year Feb. 2 Wrote a $400 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier Purchased bond paper for the copier for $14.15 that is immediately used 9 Paid $32.50 CO D shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory 12 Paid $7.95 postage to express mail a contract to a client 14 Reimbursed Adina Sharon, the manager, S68 for business mileage on her car 20 Purchased stationery for $67.77 that is immediately used. 23 Paid a courier $20 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid S13.10 COD shippin g charges on merchandise purchased for resale, terms FOB shipping point 27 Paid $54 for postage expenses 28 The fund had $120.42 remaining in the petty cash box. Sorted the petty cash receipts by ac- counts affected and exchanged them for a check to reimburse the fund for expenditures 28 The petty cash fund amount is increased by $100 to a total of $500, Required 1. Prepare the journal entry to establish the petty eash fund. 2. Prepare a petty cash payments report for Februaty with these categories: delivery expense, mileag ex pense, postage expense, merchandise inventory (for transportation-in), and office supplies expense Sort the payments into the appropriate categories and total the expenditures in each category Prepare the fund amount Check 3. ournal entries (in dollars and cents) for part 2 to both ta) reunburse and L bi ?ncrease the
