Required: 1. Prepare the journal entry to establish the petty cash fund. 2 Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense
Required: 1. Prepare the journal entry to establish the petty cash fund. 2 Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 5QY: The Supplies account has a 1,400 balance. A physical inventory is taken at the end of the fiscal...
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Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to
account for merchandise inventory.
February 2 Wrote a $360 check to establish a petty cash fund.
February
5 Purchased paper for the copier for $14.75
that is immediately used.
February 9 Paid $36.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These
costs are added to merchandise inventory.
February 12 Paid $7.35 postage to deliver a contract to a client
February
14 Reimbursed Adina Sharon,
the manager,
$70 for
mileage on her car
February
28 Purchased office paper for $67.77 that is immediately used.
February 23 Paid a courier $18 to deliver merchandise sold to a customer, terms FOB destination.
February 25 Paid $11.50 shipping charges (transportation-in) on merchandise purchased for resale, terms FOB shipping point. These
costs are added to merchandise inventory.
February 27 Paid $56 for postage expenses.
February 28 The fund had $22.73 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged
them for a
check to reimburse the fund for expenditures.
February 28 The petty cash fund amount is increased by $110 to a total of $470.
Required:
1. Prepare the journal entry to establish the petty cash fund.
2 Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense,
merchandise inventory (for transportation-in), and office supplies expense.
3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount.
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