Question
After establishing a petty cash fund for $500.00, ACME Company had the following transactions involving petty cash durning March 2019: March 3 - Paid 30.50
After establishing a petty cash fund for $500.00, ACME Company had the following transactions involving petty cash durning March 2019:
March 3 - Paid 30.50 COD shipping charges on merchandise purchased for resale. ACME uses perpetual system for inventory
March 10 - Paid 12.95 for postage
March 18 - Paid 10.50 for office supplies
March 25 - paid a courier 20 to deliver merchandise to a customer
March 29 - Paid 80.00 for postage
March 31 - The fund had 345.00 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
March 31 - After reimbursement above, wrote an additional check for 100.00 to increase the fund to 600.00
In addition to recording the expenses as debits to each of the accounts, the journal entry to reimburse the fun on March 3 includes a credit to cash for _______________________ (153.95, 155.00, or 1.05)
and a debit to ____________________________ (cash, petty cash, or cash short or over) for _________________________ (1.05, 155.00, or 153.95).
After the above entry, the entry to increase the petty cash to $600.00 includes a debit to ________________________ (petty cash or cash) and a credit to _____________________ (petty cash or cash) for ___________________________ (100 or 600).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started