lahcial Accounting, Binder Ready Version Tools for Business Decision Making-Wile

Question

lahcial Accounting, Binder Ready Version Tools for Business Decision Making-Wiley (201 Telephone, Internet, and fax Postage Freight-out 16.40 39.70 6.80 2 2 Instructions Journalize the entries in October that pertain to the petty cash fund. E7-16 Kael Company maintains a petty cash fund for small expenditures. These trans. actions occurred during the month of August. Jo Established the petty cash fund by writing a check payable to the petty cash custodian for $200. Replenished the petty cash fund by writing a check for $175. On this date, the fund consisted of $25 in cash and these petty cash receipts: freight-out $74.40, entertainment expense $36, postage expense $33.70, and miscellaneous Aug. 1 LO 15 Increased the amount of the petty cash fund to $400 by writing a check for $200. Replenished the petty cash fund by writing a check for $283. On this date, the fund consisted of $117 in cash and these petty cash receipts: postage expense $145, entertainment expense $90.60, and freight-out $46.40 16 31 Instructions (a) Journalize the petty cash transactions. (b) Post to the Petty Cash account. (c) What internal control features exist in a petty cash fund?

Explanation / Answer

Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Aug Petty Cash                                         Dr.      200.00    To Cash      200.00 15-Aug Freight Out                                        Dr.         74.40 Entertainment Expenses             Dr.         36.00 Postage Expenses                          Dr.         33.70 Miscellaneous Expenses             Dr.         27.50 Over / Short                                      Dr.           3.40    To Cash      175.00 16-Aug Petty Cash                                         Dr.      200.00    To Cash      200.00 31-Aug Postage Expenses                          Dr.      145.00 Entertainment Expenses             Dr.         90.60 Freight Out                                        Dr.         46.40 Over / Short                                      Dr.           1.00    To Cash      283.00 Answer b. Petty Cash Account 1-Aug      200.00      175.00 15-Aug 15-Aug      175.00      283.00 31-Aug 16-Aug      200.00 31-Aug      283.00 End. Bal.      400.00 Answer c. Internal Control features in petty cash fund are: 1. Requiring vouchers or receipts 2. Requiring a written check to replenish the fund. 3. Having only a custodian to be authorized to make payments from the funds. 4. Keeping a petty cash payments records.

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.