Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare journal entries for a petty cash fund. E7.8 (LO 2), AP Horvath Company uses an imprest petty cash system. The fund was established on

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Prepare journal entries for a petty cash fund. E7.8 (LO 2), AP Horvath Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $100. During March, the following petty cash receipts were found in the petty cash box. Date Receipt For No. 3/5 1 Stamps 7 2 Freight-Out 9 3 Miscellaneous Expense 11 4 Travel Expense 14 5 Miscellaneous Expense The fund was replenished on March 15 when the fund contained $2 in cash. On March 20, the fund was increased to $175. Instructions Journalize the entries in March that pertain to the operation of the petty cash fund. 4 For Amount Receipt No. 1 $39 2 21 3 6 Stamps Freight-Out Miscellaneous Expense Travel Expense Miscellaneous Expense 4 24 5 5 Prepare journal entries for a petty cash fund. E7.8 (LO 2), AP Horvath Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $100. During March, the following petty cash receipts were found in the petty cash box. Date Receipt For No. 3/5 1 Stamps 7 2 Freight-Out 9 3 Miscellaneous Expense 11 4 Travel Expense 14 5 Miscellaneous Expense The fund was replenished on March 15 when the fund contained $2 in cash. On March 20, the fund was increased to $175. Instructions Journalize the entries in March that pertain to the operation of the petty cash fund. 4 For Amount Receipt No. 1 $39 2 21 3 6 Stamps Freight-Out Miscellaneous Expense Travel Expense Miscellaneous Expense 4 24 5 5 Prepare bank reconciliation and adjusting entries. E7.9 (LO 3), AN Rachel Sells is unable to reconcile the bank balance at January 31. Rachel's reconciliation is shown here. $3,677.20 450.00 28.00 $4,099.20 Cash balance per bank Add: NSF check Less: Bank service charge Adjusted balance per bank Cash balance per books Less: Deposits in transit Add: Outstanding checks Adjusted balance per books Instructions $3,975.20 590.00 770.00 $4,155.20 a. What is the proper adjusted cash balance per bank? b. What is the proper adjusted cash balance per books? c. Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books

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_2

Step: 3

blur-text-image_3

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

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

11th Edition

111856667X, 978-1118566671

More Books

Students also viewed these Accounting questions