The accounting system used by Dartmouth Sales and Service requires that all entries be journalized in a
Question:
Feb. 3 A company cheque for $200 was prepared and made payable to the petty cashier to establish the petty cash fund.
14 A company cheque was prepared to replenish the fund for the following expenditures made since February 3 and to increase the fund to $250.
a. Purchased office supplies, $65.82.
b. Paid $75.00 COD charges on merchandise purchased for resale. Dartmouth uses the perpetual method to account for merchandise inventory.
c. Paid $36.40 to Data Services for minor repairs to a computer.
d. Paid $15.23 for postage expenses.
e. Discovered that only $5.55 remained in the petty cash box.
28 The petty cashier noted that $39.30 remained in the fund, and decided that the February 14 increase in the fund was not large enough. A company cheque was prepared to replenish the fund for the following expenditures made since February 14, and to increase it to $300.
f. Paid $45 to The Smart Saver for an advertisement in a monthly newsletter.
g. Paid $96.35 for office supplies.
h. Paid $69.35 to Best Movers for delivery of merchandise to a customer.
Required
Prepare General Journal entries to record the establishment of the fund on February 3 and its replenishment on February 14 and February 28.
Analysis Component:
Explain how the company's financial statements would be affected if the petty cash fund is not replenished and no entry is made on February 28.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0071051507
Volume I, 14th Canadian Edition
Authors: Larson Kermit, Tilly Jensen
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