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Setterstrom Company established a petty cash fund on May 1, cashing a check for

ID: 2557503 • Letter: S

Question

Setterstrom Company established a petty cash fund on May 1, cashing a check for $125. The company reimbursed the fund on June 1 and July 1 with the following results.


On July 10, Setterstrom increased the fund from $125 to $155.

Prepare journal entries for Setterstrom Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)

Date

Account Titles and Explanation

Debit

Credit

June 1

July 1

June 1: Cash in fund $2.50. Receipts: delivery expense $30.35, postage expense $37.35, and miscellaneous expense $52.60. July 1: Cash in fund $5.35. Receipts: delivery expense $24.10, entertainment expense $46.30, and miscellaneous expense $49.25.

Explanation / Answer

Date Account titles & Explanation Debit Credit 1-May petty cash 125 cash 125 1-Jun Delivery expense 30.35 postage expense 37.35 miscellaneous expense 52.6 cash over and short 2.2 Cash. 122.5 (125-120.3 = 4.7 ) (4.7-2.5 = 2.2 ) 1-Jul Delivery expense 24.1 postage expense 46.3 miscellaneous expense 49.25 Cash 119.65 10-Jul petty cash (155-125) 30 cash 30

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