Back to Messages 7:47 PM 60% edugen.wileyplus.com Problem 7-2A Forney Company ma

ID: 2421369 • Letter: B

Question

Back to Messages 7:47 PM 60% edugen.wileyplus.com Problem 7-2A Forney Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period. July 1 Established petty cash fund by writing a check on Scranton Bank for $200.00. 15 Replenished the petty cash fund by writing a check for $196.00. On this date, the fund consisted of $4.00 in cash and the following petty cash receipts: freight-out $92.00, postage expense $42.40, entertainment expense $46.60, and miscellaneous expense $11.20. 31 Replenished the petty cash fund by writing a check for $192.00. At this date, the fund consisted of $8.00 in cash and the following petty cash receipts: freight-out $82.10, charitable contributions expense $45.00, postage expense $25.50, and miscellaneous expense $39.40. Aug. 15 Replenished the petty cash fund by writing a check for $187.00. On this date, the fund consisted of $13.00 in cash and the following petty cash receipts: freight-out $77.60, entertainment expense $43.00, postage expense $33.00, and miscellaneous expense $37.00. 16 Increased the amount of the petty cash fund to $300.00 by writing a check for $100.00. 31 Replenished the petty cash fund by writing a check for $284.00. On this date, the fund consisted of $16.00 in cash and the following petty cash receipts: postage expense $140.00, travel expense $95.60, and freight-out $47.10. Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) July 1 uly 15 uly 31,

Explanation / Answer

(a) July 1 Petty Cash................................................. 200.00

Cash................................................... 200.00

15 Freight-Out................................................ 92.00

Postage Expense.................................... 42.40

Entertainment Expense......................... 46.60

Miscellaneous Expense......................... 11.20

Cash Over and Short.............................. 3.80

Cash................................................... 196.00

31 Freight-Out................................................ 82.10

Charitable Contribution Expense........ 45.00

Postage Expense.................................... 25.50

Miscellaneous Expense......................... 39.40

Cash................................................... 192.00

Aug. 15 Freight-Out................................................ 77.60

Entertainment Expense......................... 43.00

Postage Expense.................................... 33.00

Miscellaneous Expense......................... 37.00

Cash Over and Short...................... 3.60

Cash................................................... 187.00

16 Petty Cash................................................. 100.00

Cash................................................... 100.00

31 Postage Expense.................................... 140.00

Travel Expense........................................ 95.60

Freight-Out................................................ 47.10

Cash Over and Short.............................. 1.30

Cash................................................... 284.00

(b)

Petty Cash

Date

Explanation

Ref.

Debit

Credit

Balance

July 1

Aug. 16

200

100

200

300