ALINGS REVEW Bacardi Company established a $150 petty cash fund with Eminem as t

Question

ALINGS REVEW Bacardi Company established a $150 petty cash fund with Eminem as the petty cashier. When the fund balance reached $19 cash. Eminem prepared a petty cash payment report, which follows 12 13 15 16 Delivery Expense Merchandise Inventory (Omitted) Miscellaneous Expense Total $29 Eminem 18 Eminem 32 Eminem 41 (Omitted) A. Sminoff J. Daniels C. Carlsberg J. Waker 2. Prepare general journal entries to record the establäshment of the fund and the reimbursement of the fund. (Assume that management was unable to verify the account number for receipt no. 15.)

Explanation / Answer

1. Journal Entry for Recognition of Expenses-

Delivery expenses a/c Dr 29

Merchandise Inventory A/c Dr 18

To Petty cash Fund A/c 47

2. at the time of Reimburement

Petty Cash Fund A/c 47

to Bank A/c 47

Note-1 Receipt no 15 and 16 Expenses should be recogonised when Charged and Approved Respectively

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