O In June, a local Amtrak office established a petty cash fund with Terrell Noman as its custodian. Terrell received and cashed a company check of $175 to establish the fund. During that month, Terrell paid cash from the fund for supplies ($30), delivery charges ($80), and other minor office expenses ($40). On July 10, he received a company check for $150 to replenish the fund. Required: 1. Prepare the journal entry required in June. 2. Prepare the journal entry required in July. 3. Explain why it may be appropriate or inappropriate to wait until July to record the payments from the petty cash fund.
O In June, a local Amtrak office established a petty cash fund with Terrell Noman as its custodian. Terrell received and cashed a company check of $175 to establish the fund. During that month, Terrell paid cash from the fund for supplies ($30), delivery charges ($80), and other minor office expenses ($40). On July 10, he received a company check for $150 to replenish the fund. Required: 1. Prepare the journal entry required in June. 2. Prepare the journal entry required in July. 3. Explain why it may be appropriate or inappropriate to wait until July to record the payments from the petty cash fund.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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