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Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Ch

ID: 2468227 • Letter: W

Question

   

Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Chloe Addison, the petty cashier.

Purchased bond paper for the copier for $15.95 that is immediately used.

Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Nakashima uses the perpetual system to account for merchandise inventory.

Paid $8.75 postage to express mail a contract to a client.

Reimbursed Adina Sharon, the manager, $72 for business mileage on her car.

Purchased stationery for $69.77 that is immediately used.

Paid a courier $19 to deliver merchandise sold to a customer, terms FOB destination.

Paid $11.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.

The fund had $25.26 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.

The petty cash fund amount is increased by $150 to a total of $500

Cash

Nakashima Gallery had the following petty cash transactions in February of the current year.

Explanation / Answer

Nakashima Gallery All Amounts in $ Journal Entries for Petty Cash Accounting Date Particulars Debit Credit 02-Feb Petty Cash A/c 350 To Cash A/c 350 05-Feb Office Supplies A/c 15.95 To Petty Cash A/c 15.95 09-Feb Merchandise Inventory A/c 34.5 To Petty Cash A/c 34.5 12-Feb Postage Expenses A/c 8.75 To Petty Cash A/c 8.75 14-Feb Mileage Expenses A/c 72 To Petty Cash A/c 72 20-Feb Office Supplies A/c 69.77 To Petty Cash A/c 69.77 23-Feb Delivery Expenses A/c 19 To Petty Cash A/c 19 25-Feb Merchandise Inventory A/c 11.1 To Petty Cash A/c 11.1 27-Feb Postage Expenses A/c 59 To Petty Cash A/c 59 Cash Over by $ 350 - $ 290.07 = $ 59.93. Since we had only $ 25.26 in the petty cash box, this means that the cash is short by $ 34.67. Petty Cash A/c 290.07 Petty Cash A/c 150 To Cash A/c 440.07