Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lakeland's Business Department completed the following petty cash transactions during July 2020: July 5 Prepared a $500 cheque, cashed it, and turned the proceeds

Lakeland's Business Department completed the following petty cash transactions during July 2020: July 5 Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Cassandra Kirkland, the petty cashier. 6 Paid $35 COD charges on merchandise purchased for resale. Lakeland uses the perpetual method to account for merchandise inventory. 11 Paid $46 delivery charges on merchandise sold to a customer. Purchased file folders, $38. 12 18 Purchased paper for printer, $62. 27 Paid $28 COD charges on merchandise purchased for resale. 28 Purchased stamps, $52. 30 Reimbursed John Turvey $125 for business car expenses. 31 Cassandra Kirkland sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $105 in cash in the fund. In addition, the size of the petty cash fund was decreased to $400. Required: 1. Prepare a general journal entry to record establishing the petty cash fund. 2. Prepare a Petty Cash Payments Report similar to Exhibit 7.3 that has these categories: delivery expense, auto expense, postage expense, merchandise inventory, and office supplies. 3. Prepare the general journal entry to record the reimbursement and the decrease of the fund.

Step by Step Solution

3.51 Rating (168 Votes )

There are 3 Steps involved in it

Step: 1

1 Journal to record ... 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

Fundamental Accounting Principles

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

20th Edition

1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870

More Books

Students also viewed these Accounting questions

Question

Describe Montaignes position on child rearing.

Answered: 1 week ago