Question
Exercise 6-6 Petty cash fund accounting LO P2 Palmona Co. establishes a $160 petty cash fund on January 1. On January 8, the fund shows
Exercise 6-6 Petty cash fund accounting LO P2
Palmona Co. establishes a $160 petty cash fund on January 1. On January 8, the fund shows $69 in cash along with receipts for the following expenditures: postage, $39; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $28. Palmona uses the perpetual system in accounting for merchandise inventory. |
Prepare journal entry to establish the fund on January 1, reimburse it on January 8, and reimburse the fund and increase it to $210 on January 8, assuming no entry in part 2. (Hint:Make two separate entries for part 3.) |
Exercise 6-5 Petty cash fund with a shortage LO P2
Waupaca Company establishes a $330 petty cash fund on September 9. On September 30, the fund shows $66 in cash along with receipts for the following expenditures: transportation-in, $50; postage expenses, $69; and miscellaneous expenses, $140. The petty cashier could not account for a $5 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. |
Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $390. |
Exercise 6-9 Bank reconciliation LO P3
Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a(n) $12,695 debit balance. Del Gato Clinics June 30 bank statement shows $12,437 on deposit in the bank. |
a. | Outstanding checks as of June 30 total $2,020. |
b. | The June 30 bank statement included a $25 debit memorandum for bank services. |
c. | Check No. 919, listed with the canceled checks, was correctly drawn for $389 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $398. |
d. | The June 30 cash receipts of $2,262 were placed in the banks night depository after banking hours and were not recorded on the June 30 bank statement. |
Prepare a bank reconciliation for Del Gato Clinic using the above information: | ||||||||||||||||||||||||||||||
Problem 6-2A Establish, reimburse, and adjust petty cash LO P2
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