Create a disbursement journal. Locate the disbursement journal template found on the Evolve companion site under the file name Assignment Disbursement. Before starting, review Fig. as an example of the format to follow. Record the transactions listed below as entries in your disbursement journal use consecutive cheque numbers, starting at no:

The column headings found on the disbursement journal indicate the information required; date as specified below number cheque number description as shown in brackets below category office supplies, payroll, entertainment, rent, electricity, government remittance, internet, donation, or drawing for personal use and amount of the disbursement cheque. Use your judgement to select an appropriate category of the disbursement.

January

Establish petty cash fund for $

The doctor entertained at a dinner party and spent $Romeos Cafe

Paid Purolator $ for delivery of laboratory reports

Purchased letterhead and envelopes $ABC Supplies

Paid January rent $Medical Services Inc.

Paid automobile credit card charges for gas and oil $Jays Gas Bar

Paid your wages $ and janitors wages $Don James

The doctor withdrew $ for personal use

Sent cheque to Power Company for $

Made $ contribution to the United Way

Paid Internet service provider $

Paid Campbells Florist $ for roses sent to the doctors wife for anniversary

Paid your wages $ and janitors wages $Don James

The doctor withdrew $

Submitted cheque to the Receiver General of Canada for income tax $; employment insurance, $; Canada Pension $

Reimbursed petty cash $

Examine your entry on January for the dinner party. If a businessperson entertains for the purpose of promoting the business, the expense is taxdeductible. However, a businessperson must not charge personal expenses against the business. You may have entered the $ dinner expense under Travel and Entertainment, assuming it was a business engagement. Or you may have assumed it was a personal engagement, in which case the entry would be made under Drawings