Chapter7 ex07-24

Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles):

A.

On July 1, check No. 12-375 is issued to establish a petty cash fund of $1,125.

B.

The amount of cash in the petty cash fund is now $130. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $646; miscellaneous selling expense, $184; miscellaneous administrative expense, $149. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,125, record the discrepancy in the cash short and over account.)

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
591	Miscellaneous Administrative Expense
592	Miscellaneous Selling Expense
710	Interest Expense

Journalize the entries to record the following:

A. Check No. 12-375 is issued on July 1 to establish a petty cash fund of $1,125. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

B. The amount of cash in the petty cash fund is now $130. Check No. 12-476 is issued on December 31 to replenish the fund, based on the following summary of petty cash receipts: office supplies, $646; miscellaneous selling expense, $184; miscellaneous administrative expense, $149. Refer to the Chart of Accounts for exact wording of account titles. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,125, record the discrepancy in the cash short and over account.)

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5