P 7. A small company maintains a petty cash fund for minor expenditures. Thefoll
ID: 2379528 • Letter: P
Question
P 7. A small company maintains a petty cash fund for minor expenditures. Thefollowing transactions occurred in June and July.a. The fund was established in the amount of $300.00 on June 1 from the proceedsof check no. 1515.b. On June 30, the petty cash fund had cash of $46.38 and the followingreceipts on hand: postage, $120.00; supplies, $74.82; delivery service,$37.20; and rubber stamp, $21.60. Check no. 1527 was drawn to replenishthe fund.c. On July 31, the petty cash fund had cash of $66.18 and the following receiptson hand: postage, $102.60; supplies, $98.52; and delivery service, $19.20.The petty cash custodian could not account for the shortage. Check no.1621 was written to replenish the fund.
Required
1. In journal form, prepare the entries necessary to record each of thesetransactions.
Explanation / Answer
A small company maintains a petty cash fund for minor expenditures. In June and July , the following transactions took place: 1. The fund was established in the amount of $300.00 on June 1 from the proceeds of check no. 1515 Debit: Petty Cash 300 Credit: Cash 300 2. Debit: Postage expense 120 Debit: Supplies expense 74.82 Debit: Delivery expense 37.20 Debit: Miscellaneous Expense 21.60 Credit: Cash 253.62
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