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Capital Irrigation has only a General Journal in its accounting system and uses it to record all transactions. However, the company recently set up a
Capital Irrigation has only a General Journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash transactions were noted by the petty cashier as occurring during April 2020:
Apr. | 1 | Received a company cheque for $250 to establish the petty cash fund. |
15 | Received a company cheque to replenish the fund for the following expenditures made since April 1 and to increase the fund to $330. | |
a. Paid $67 for janitorial service. | ||
b. Purchased office supplies for $67. | ||
c. Purchased postage stamps for $21. | ||
d. Paid $79 to The County Crier for an advertisement in the newspaper. | ||
e. Discovered that $20 remained in the petty cash box. | ||
30 | The petty cashier noted that $200 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was issued to replenish the fund for the following expenditures made since April 15 and to reduce the fund to $290. | |
f. Purchased office supplies for $78. | ||
g. Reimbursed office manager for business auto, $38. | ||
h. Paid $14 courier charges to deliver merchandise to a customer. |
Prepare journal entries to record the establishment of the fund on April 1 and its replenishments on April 15 and April 30.
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