Lincolnville Company uses an imprest petty cash system. The fund was established

Question

Lincolnville Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $100. During March the following petty cash receipts were found in the petty cash box.



3/5 Stamp inventory $39
3/7 Freight-out $21
3/9 Miscellaneous Expense $6
3/11 Travel Expense $24
3/14 Miscellaneous Expense $5

The fund was replenished on March 15 when the fund contained $3 in cash. On March 20, the amount in the fund was increased to $150.

Journalize the entries in March that pertain to the operation of the petty cash fund.

Explanation / Answer

March 01 Petty cash $100 Cash $100 (To record establishment of Petty cash) March 15 Stamp expense $39 Freight-out $21 Travel Expense $24 Miscellaneous Expense $11 Petty cash short / excess $ 2 Cash $97 (To record replenishment of petty cash) March 20 Petty cash $50 Cash $50 (To record enhancement of Petty cash)

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.