Journalize the entry or entries that should be made by the company. 3. Petty Cas
ID: 2700904 • Letter: J
Question
Journalize the entry or entries that should be made by the company.
3.Petty Cash Fund Entries
Journalize the entries to record the following:
b. Journalize the entry to replenish the petty cash fund. If a box does not require an entry, leave it blank or enter "0".
Journalize the entry or entries that should be made by the company.
3.Petty Cash Fund Entries
Journalize the entries to record the following:
- Check No. 6300 is issued to establish a petty cash fund of $1,200.
- The amount of cash in the petty cash fund is now $200. Check No. 6527 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $650; miscellaneous selling expense, $230; miscellaneous administrative expense, $90. (Since the amount of the check to replenish the fund plus the balance in the fund do not equal $1,200, record the discrepancy in the cash short and over account.)
a. Journalize the entry to establish the petty cash fund.
b. Journalize the entry to replenish the petty cash fund. If a box does not require an entry, leave it blank or enter "0".
Explanation / Answer
Jan. 2 -issued a check to establish petty fund of 2000
Dr Petty cash $2,000
Cr Cash $2,000
Mar 4- Replenished the petty cash fund, based on the following summary petty cash receipts: office supplies $789, miscellaneous selling expense $256; miscellaneous administrative expense $378
Dr office supplies $789
Dr miscellaneous selling expense $256
Dr miscellaneous administrative expense $378
Cr Cash $1,423
Apr 5- purchased $14,000 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory.
Dr merchandise inventory $14,000
Cr Accounts payable $14,000
May 7 - Paid the invoice of April 5 after the discount period had passed
Dr AP $14,000
Cr Cash $14,000
May 10 - Received cash from daily cash sales for $9, 455 the amount indicated by the cash register was $9,545
Dr Cash $9,455
Dr Cash over and short (expense) $90
Cr Sales $9,545
June 2 - Received a 60 day, 9% note for 80,000 on the Stevens account
Dr Note receivable 80,000
Cr Accounts receivable 80,000
Aug 1 - Received amount owed on June 2 note plus interest at the maturity date
Dr Cash $81,200
Cr Note receivable $80,000
Cr Interest revenue $1,200
Aug 8 - Received $3,400 on the Jacobs account and wrote off the remainder owed on a 4,000 accounts receivable balance. (The allowance method is used in accounting the noncollectable receivable.)
Dr Cash $3,400
Cr AR $4,000
Cr Allowance for doubtful accounts $600
Aug 25 - reinstated the Jacobs account written off on August 8 and received $600 cash in full payment
Dr AR $600
Cr Allowance for doubtful accounts $600
Dr Cash $600
Cr AR $600
Purchased land by issuing a $300,000, 90 day note to Ace Development which it discounted at %10
Dr Land $292,500
Dr Discount on note payable $7,500
Cr Note payable $300,000
Dec 1 - Journalized the payment of the September 2 note at maturity
Dr Note payable $300,000
Cr Cash $300,000
Dr Interest expense $7,500
Cr Discount on note payable $7,500
Dec 30 - the pension cost for the year was $85,000, of which $62,400 was paid to the pension plan trustee
Dr Pension cost $22,600
Cr Pension cost payable $22,600
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