Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me complete all four journal entries Palmona Company establishes a $200 petty cash fund on January 1. On January 8, the fund shows

Please help me complete all four journal entries

Palmona Company establishes a $200 petty cash fund on January 1. On January 8, the fund shows $97 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $15; delivery expenses, $17; and miscellaneous expenses, $30. 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:
  3. To reimburse the fund.
  4. To reimburse the fund and increase it to $250. Hint: Make two entries. image text in transcribedimage text in transcribed
Palmona Company establishes a $200 petty cash fund on January 1 . On January 8 , the fund shows $97 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $15; delivery expenses, $17; and miscellaneous expenses, $30. 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 $250. Hint. Make two entries. Journal entry worksheet 4 Record the journal entry to establish the petty cash fund. Note: Enter debits before credits. 1 Record the journal entry to establish the petty cash fund. 2 Record the reimbursement of the petty cash fund. 3 Record the reimbursement of the petty cash fund. 4 Record the increase of the petty cash fund. Note : O= journal entry has been entered

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

5th Edition

0273651560, 978-0273651567

More Books

Students also viewed these Accounting questions

Question

What is the purpose of the EEOC?

Answered: 1 week ago