Question
Milton Consulting completed the following petty cash transactions during February 2017: Feb. 2 Prepared a $460 cheque, cashed it, and gave the proceeds and the
Milton Consulting completed the following petty cash transactions during February 2017: Feb. 2 Prepared a $460 cheque, cashed it, and gave the proceeds and the petty cash box to Nick Reed, the petty cashier. 5 Purchased paper for the copier, $28. 9 Paid $48 COD charges on merchandise purchased for resale. Assume Milton Consulting uses the perpetual method to account for merchandise inventory. 12 Paid $21 postage to express mail a contract to a client. 14 Reimbursed Kim Marn, the manager of the business, $183 for business auto expenses. 20 Purchased stationery, $80. 23 Paid a courier $24 to deliver merchandise sold to a customer. 25 Paid $29 COD charges on merchandise purchased for resale. 28 Paid $37 for stamps. 28 Reed sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was only $8 in cash in the fund. In addition, the size of the petty cash fund was increased to $510. Required: 1. Prepare a journal entry to record establishing the petty cash fund. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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