Haig company maintains a petty cash fund for small expenditures. The following t
ID: 2475415 • Letter: H
Question
Haig company maintains a petty cash fund for small expenditures. The following transactions occured over a 2-month period.
July 1- Established petty cash fund by writting a check on China Bank for $100
July 15-- Replenished the petty cash fund by writting a check for $96.90. On this date the fund consisted of $3.10 in cash and the following petty cash receipts freight-out $51.00, postage expense $20.50, entertainment expense $23.10 and miscellaneous expense $6.10
July 31-- Replenished the petty cash fund by writting a check for $95.90. At this date the fund consisted of $4.10 in cash and the following petty cash receipts freight-out $43.50, charitable contributions expense $20.00, postage expense $20.10 and miscellaneous expense $12.30
Aug 15- Replenished the petty cash fund by wirtting a check for $98.00. On this date the fund consisted of $2.00 in cahs and the following petty cash receipts freight-out $40.20 enterainment expense $21.00 postage expense $16.00 and miscellaneous expense $19.80
Aug 16- Increased the amount of petty cash fund to $150 by writting a check for $50
Aug 31st- Replenished the amount of the petty cash fun to $150 by writting a check for $50 fund consisted of $13 in cash and the following petty cash recipts: freight-out $74.00 entertainment expense $43.20 and postage expense $17.70
Instructions
(a) journalize the petty cash transactions
(b) post to the Petty Cash Account
(c) what internal control featuers exist in a petty cash fund?
Explanation / Answer
As per Chegg's guidelines, I am giving the answer of first question:
Date
Particulars
Dr.
Cr.
1-Jul
Petty Cash
200
Cash
200
To establish petty cash fund
15-Jul
Delivery Expenses
51
Postage Expenses
20.5
Entertainment Expenses
23.1
Miscellaneous Expenses
6.1
Cash
96.9
Cash short
3.8
Reimbursement of petty cash
31-Jul
Delivery Expenses
43.5
Charitable contribution
20
Postage Expenses
20.1
Miscellaneous Expenses
12.3
Cash
95.5
Cash short
0.4
Reimbursement of petty cash
15-Aug
Delivery Expenses
40.2
Entertainment
21
Postage Expenses
16
Miscellaneous Expenses
19.8
Cash over
1
Cash
98
Reimbursement of petty cash
16-Aug
Petty Cash
50
Cash
50
Increased petty cash fund
31-Aug
Delivery Expenses
74
Postage Expenses
43.2
Travel Expenses
17.7
Cash short
15.1
Cash
150
Reimbursement of petty cash
Date
Particulars
Dr.
Cr.
1-Jul
Petty Cash
200
Cash
200
To establish petty cash fund
15-Jul
Delivery Expenses
51
Postage Expenses
20.5
Entertainment Expenses
23.1
Miscellaneous Expenses
6.1
Cash
96.9
Cash short
3.8
Reimbursement of petty cash
31-Jul
Delivery Expenses
43.5
Charitable contribution
20
Postage Expenses
20.1
Miscellaneous Expenses
12.3
Cash
95.5
Cash short
0.4
Reimbursement of petty cash
15-Aug
Delivery Expenses
40.2
Entertainment
21
Postage Expenses
16
Miscellaneous Expenses
19.8
Cash over
1
Cash
98
Reimbursement of petty cash
16-Aug
Petty Cash
50
Cash
50
Increased petty cash fund
31-Aug
Delivery Expenses
74
Postage Expenses
43.2
Travel Expenses
17.7
Cash short
15.1
Cash
150
Reimbursement of petty cash
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.