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Palmona Co. establishes a $200 petty cash fund on January a. On January 8, the f

ID: 2513670 • Letter: P

Question

Palmona Co. establishes a $200 petty cash fund on January a. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses $16 and miscellaneous expenses, $43. Palmona uses the perpetual system in accounting for merchandise inventory. Prepapre journal entries to establish the fund on january 8. assuming no entry in part 2. (hint: make two separate entries for part 3)

book Financial and Managerial accounting 2017

Explanation / Answer

Date General Journal Debit Credit Jan 01 Petty cash $200 Cash $200 Postage expense $74 Merchandise inventory $29 Delivery expense $16 Miscellaneous expenses $43 Cash $162 Jan 08 Petty cash $250 Cash $250