Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 6-6 Petty cash fund accounting LO P2 Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows

image text in transcribedimage text in transcribed

Exercise 6-6 Petty cash fund accounting LO P2 Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows $21 in cash along with receipts for the following expenditures: postage, $49; transportation-in, $15; delivery expenses, $17; and miscellaneous expenses, $38. 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 $190 on January 8, assuming no entry in part 2. (Hint: Make two separate entries for part 3.) View transaction list Journal entry worksheet 2 3 Record the journal entry to establish the Petty Cash fund. Note: Enter debits before credits. General Journal Debit Credit Date Jan.1 Record entry Clear entry View general journal 1 Record the journal entry to establish the Petty Cash fund. 2 Record the reimbursement of the petty cash fund. 3 Record the increase of the 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

How To Audit The Process Based QMS

Authors: Arter, Dennis R., Cianfrani, Charles A, And West, John E., 'Jack'

2nd Edition

0873898443, 978-0873898447

More Books

Students also viewed these Accounting questions