Question
Larkspur Airline needs to send out one of its employees to Nunavut for three weeks to perform some repairs on some aircraft it owns. Some
Larkspur Airline needs to send out one of its employees to Nunavut for three weeks to perform some repairs on some aircraft it owns. Some of the payments to be made for the supplies needed on the assignment will be paid from a petty cash fund. Larkspur issued a cheque in the amount of $800.00 to establish the fund. After a few days at the assignment, the employee returned the following vouchers and receipts along with a report that the fund had $73.20 left in cash. Larkspur decided to increase the petty cash fund to $1,000.00
| Receipt | Amount | Description | |||
| 1 | $27.20 | Taxi ride from airport to job site | |||
| 2 | 43.85 | FedEx charges for delivering plane parts | |||
| 3 | 34.05 | Long distance telephone charges | |||
| 4 | 73.50 | Cleaning supplies - all used | |||
| 5 | 334.50 | Air freight to ship parts out for overhaul | |||
| 6 | 93.75 | Small tools replaced | |||
| 7 | 46.45 | Tarp to protect engine from elements | |||
| 8 | 66.75 | Grease and oil supplies - all used 1.Prepare the journal entry to establish the petty cash fund. 2.Prepare the journal entry to replenish the fund to $800.00. 3.Prepare the journal entry to increase the fund to $1,000.00 | |||
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
