Palmona Company establishes a $220 petty cash fund on January 1. On January 8, the fund shows $129 in cash along with receipts for the following expenditures: postage, $39; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $28. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $270. Hint. Make two entries. View transaction list Journal entry worksheet < 1 2 3 Record the reimbursement of the petty cash fund. Note: Enter debits before credits. 4 Date January 08 Postage expense General Journal Merchandise inventory Delivery expense Miscellaneous expenses Cash Debit 39 Credit >
Palmona Company establishes a $220 petty cash fund on January 1. On January 8, the fund shows $129 in cash along with receipts for the following expenditures: postage, $39; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $28. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $270. Hint. Make two entries. View transaction list Journal entry worksheet < 1 2 3 Record the reimbursement of the petty cash fund. Note: Enter debits before credits. 4 Date January 08 Postage expense General Journal Merchandise inventory Delivery expense Miscellaneous expenses Cash Debit 39 Credit >
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 2PB: On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare...
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