Question
Christina Company established a petty cash fund on 1 May 2020, cashing a check for $150. The company reimbursed the fund on 1 June 2020
Christina Company established a petty cash fund on 1 May 2020, cashing a check for $150. The company reimbursed the fund on 1 June 2020 and 1 July 2020 with the following results. 1 June 2020 1 July 2020 Cash in fund $4.75 Cash in fund $3.25 Receipts: delivery expense $31.25 Postage expense $39 Receipts: delivery expense $31 Entertainment expense $71 Miscellaneous expense $62 Miscellaneous expense $ 44.75 10 July 2020, Christina increased the fund from $ 150 to $ 200. Instructions: 1. Prepare journal entries for Christina Company for 1 May 2020, 1 June 2020, 1 July 2020, and 10 July 2020. (8 marks) 2. What internal control features are present in a petty cash fund
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