Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Joseph Kiuvik is reviewing the cash accounting for Sarasota Corp., a local mailing service. Joseph's review will focus on the petty cash account and
Joseph Kiuvik is reviewing the cash accounting for Sarasota Corp., a local mailing service. Joseph's review will focus on the petty cash account and the bank reconciliation for the month ended May 31, 2020. Joseph has collected the following information from Sarasota's bookkeeper: 1. The petty cash fund was established on May 10, 2020, in the amount of $400. 2. Expenditures from the fund as at May 31, 2020 were supported by approved receipts for the following: Postage expense Envelopes and other supplies $60 26 In-house business lunch provided to customers 98.50 Donation to local charity (Office Expense) 35 Shipping charges, for goods to customers 47.00 Newspaper advertising 22.80 Taxi for sales manager to attend meeting downtown (Miscellaneous Expense) 17.35 Freight paid on incoming purchases 36.80 3. On May 31, 2020, the petty cash fund was replenished and increased to $500; currency and coin in the fund at that time totalled $47.70. Sarasota's bookkeeper also provided the following summary bank statement and general ledger information:
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