QUESTION #3:

Instructions:

(a) Journalize the petty cash transactions (using general journal on next page).

(b) Post to the Petty Cash account (shown below).

COMPANY INFO:

Arial Ltd. maintains a petty cash fund for small expenditures. The following transactions occurred over a 2 month period.

July transactions

1 Established petty cash fund by writing a check on Coulter Bank for 200.

15 Replenished the petty cash fund by writing a check for 198.00. On this date, the fund consisted

of 2.00 in cash and the following petty cash receipts: freight-out 87.00, postage expense

51.40, entertainment expense 46.60, and miscellaneous expense 11.20.

31 Replenished the petty cash fund by writing a check for 192.00. At this date, the fund consisted

of 8.00 in cash and the following petty cash receipts: freight-out 82.10, charitable

contributions expense 45.00, postage expense 25.50, and miscellaneous expense 39.40.

Aug.

15 Replenished the petty cash fund by writing a check for 187.00. On this date, the fund consisted

of 13.00 in cash and the following petty cash receipts: freight-out 75.60, entertainment

expense 43.00, postage expense 33.00, and miscellaneous expense 37.00.

16 Increased the amount of the petty cash fund to 300 by writing a check for 100.

31 Replenished the petty cash fund by writing a check for 277.00. On this date, the fund consisted

of 23 in cash and the following petty cash receipt: postage expense 133.00, travel expense

95.60 and freight-out 47.10.

PETTY CASH #103

GENERAL JOURNAL
July	Account Title	Ref	Debit	Credit
1
15
31
Aug
15
16
31