Question
Suppose that on November 1, City Centre Sundials opens a new showroom in Kamloops, British Columbia, and creates a petty cash fund with an imprest
Suppose that on November 1, City Centre Sundials opens a new showroom in Kamloops, British Columbia, and creates a petty cash fund with an imprest balance of $800. During November, Al Franklin, the fund custodian, signs petty cash tickets that follow.
On November 30, prior to replenishment, the fund contains these tickets plus a cash total of $410.25. The accounts affected by petty cash payments are Office Supplies Expense, Entertainment Expense, and Delivery Expense.
Requirement 1. Make the general journal entries to (a) create the fund, and (b) replenish it. Include explanations.
Requirement 2. Journalize the replenishment of the fund.
Requirement 3. Due to the risk of robbery, make the entry on December 1 to decrease the fund balance to $575. Include an explanation. Make the entry on December 1 to decrease the fund balance to $575. Include an explanation.
Petty Cash Tickets
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