Question
Wigorn Bros. has a petty cash fund of $150. The following items were paid from this fund during the month of August. (a) Enter these
Wigorn Bros. has a petty cash fund of $150. The following items were paid from this fund during the month of August.
(a) Enter these payments on a petty cash sheet, beginning with Voucher #44. Use following tax rates :
i. Add 5% GST + 7% PST
20 Aug. 6 Broom for the warehouse, $12.08. 8 Coffee and creamer for the staff room, $16.25 (tax exempt) 9 Delivery of special order of office supplies, $7.88. 12 Pens for office, $7.35. 14 Special order of merchandise, $23.52. 15 Delivery of sale brochures, $22.89. 16 Masking tape for warehouse, $6.09. 20 Donation to charity, $20 (tax exempt). 22 Pens and pencils for office, $6.51. 24 Postage, $6.62.
(b) Total the petty cash sheet and prove equal debits and credits. Calculate the cash on hand.
(c) Prepare a General Journal entry to establish the fund on August 1.
(d) Prepare a General Journal entry to reimburse the fund at month-end. Cheque #101 was issued.
(e) Prepare a General Journal entry to increase the petty cash fund to $200.
(f) Prepare a Cash Payments Journal entry to reimburse the fund at month-end. Cheque #101 was issued.
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