Question
Summer LLP decided to establish a petty cash fund. 1) On May 1, Summer established a petty cash fund in the amount of $200. 2)
Summer LLP decided to establish a petty cash fund.
1) On May 1, Summer established a petty cash fund in the amount of $200.
2) A summary of the petty cash expenditures as of May 10 is as follows:
Delivery charges paid on merchandise purchased $60
Supplies purchased and used 25
Postage expense 40
I.O.U. from employee 17
Miscellaneous expense 36
The petty cash fund was replenished on May 10. The balance in the fund was $12.
3) The petty cash fund balance was increased $100 to $300 on May 20.
Prepare the journal entries to record the transactions related to petty cash for the month of May.
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