Forney Company maintains a petty cash fund for small expenditures. The following
ID: 2470836 • Letter: F
Question
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 $220.
15
Replenished the petty cash fund by writing a check for $216.60. On this date the fund consisted of $3.40 in cash and the following petty cash receipts: freight-out $92.00, postage expense $43.50, entertainment expense $46.50, and miscellaneous expense $33.40.
31
Replenished the petty cash fund by writing a check for $211.50. At this date, the fund consisted of $8.50 in cash and the following petty cash receipts: freight-out $79.60, charitable contributions expense $44.60, postage expense $62.20, and miscellaneous expense $25.10.
Aug.
15
Replenished the petty cash fund by writing a check for $205.10. On this date, the fund consisted of $14.90 in cash and the following petty cash receipts: freight-out $73.20, entertainment expense $44.30, postage expense $32.70, and miscellaneous expense $56.20.
16
Increased the amount of the petty cash fund to $320 by writing a check for $100.
31
Replenished the petty cash fund by writing a check for $303.60. On this date, the fund consisted of $16.40 in cash and the following petty cash receipts: postage expense $138.40, travel expense $94.60, and freight-out $69.40.
(a)
Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 52.75.)
Date
Account Titles and Explanation
Debit
Credit
July 1July 15July 31Aug. 15Aug. 16Aug. 31
July 15
July 31
Aug. 15
July 1July 15July 31Aug. 15Aug. 16Aug. 31
Aug. 31
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 $220.
15
Replenished the petty cash fund by writing a check for $216.60. On this date the fund consisted of $3.40 in cash and the following petty cash receipts: freight-out $92.00, postage expense $43.50, entertainment expense $46.50, and miscellaneous expense $33.40.
31
Replenished the petty cash fund by writing a check for $211.50. At this date, the fund consisted of $8.50 in cash and the following petty cash receipts: freight-out $79.60, charitable contributions expense $44.60, postage expense $62.20, and miscellaneous expense $25.10.
Aug.
15
Replenished the petty cash fund by writing a check for $205.10. On this date, the fund consisted of $14.90 in cash and the following petty cash receipts: freight-out $73.20, entertainment expense $44.30, postage expense $32.70, and miscellaneous expense $56.20.
16
Increased the amount of the petty cash fund to $320 by writing a check for $100.
31
Replenished the petty cash fund by writing a check for $303.60. On this date, the fund consisted of $16.40 in cash and the following petty cash receipts: postage expense $138.40, travel expense $94.60, and freight-out $69.40.
Explanation / Answer
Ans-
July 1 Dr Petty cash 220 Cr Cash 220 to establish a petty cash fund July 15 Dr Delivery expense 92.00 Dr Postage expense 43.50 Dr Entertainment expense 46.50 Dr Miscellaneous expense 33.40 Dr Cash over and short 1.20 Cr Cash 216.6 To reimburse petty cash July 31 Dr Delivery expense 79.60 Dr Charitable contributions expense 44.60 Dr Postage expense 62.20 Dr Miscellaneous expense 25.10 Cr Cash 211.5 To reimburse petty cash Aug. 15 Dr Delivery expense 73.20 Dr Entertainment expense 44.30 Dr Postage expense 32.70 Dr Miscellaneous expense 56.20 Cr Cash 205.10 Cr Cash over and short 1.30 To reimburse petty cash Aug. 16 Dr Petty cash 100 Cr Cash 100 To increase the petty cash fund amount Aug. 31 Dr Delivery expense 69.40 Dr Postage expense 138.40 Dr Travel expense 94.60 Dr Cash over and short 1.20 Cr Cash 303.60 To reimburse petty cashRelated Questions
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