Question
Palmona Company establishes a $210 petty cash fund on January 1. On January 8, the fund shows $119 in cash along with receipts for the
Palmona Company establishes a $210 petty cash fund on January 1. On January 8, the fund shows $119 in cash along with receipts for the following expenditures: postage, $39; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $28. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $260. Hint: Make two entries.
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