Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

*E7-16 Kael Company maintains a petty cash fund for small expenditures. These trans- Journalize and post petty cash actions occurred during the month of August.

image text in transcribed

*E7-16 Kael Company maintains a petty cash fund for small expenditures. These trans- Journalize and post petty cash actions occurred during the month of August. fund transactions Aug. 1 Established the petty cash fund by writing a check payable to the petty cash (LOS), AP custodian for $200. 15 Replenished the petty cash fund by writing a check for $175. On this date, the fund consisted of $25 in cash and these petty cash receipts: freight-out $74.40, entertainment expense $36, postage expense $33.70, and miscellaneous expense $27.50. 16 Increased the amount of the petty cash fund to $400 by writing a check for $200. 31 Replenished the petty cash fund by writing a check for $283. On this date, the fund consisted of $117 in cash and these petty cash receipts: postage expense $145, entertainment expense $90.60, and freight-out $46.40. Instructions (a) Journalize the petty cash transactions. (b) Post to the Petty Cash account. (c) What internal control features exist in a petty cash fund

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing At The Speed Of Risk With An Agile Continuous Audit Plan

Authors: Norman Marks

1st Edition

B09PMBSWSC, 979-8787044393

More Books

Students also viewed these Accounting questions

Question

Group Size and Communication

Answered: 1 week ago

Question

Understanding Group Roles

Answered: 1 week ago