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Fundamental Accounting Principles
24th Edition
ISBN: 9781260158595
Author: Wild
Publisher: MCG
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Question
Chapter 8, Problem 3APSA
Requirement-1:
To determine
To prepare:
The Journal entries for the establishment of the petty cash fund
Requirement-1:
Expert Solution
![Check Mark](/static/check-mark.png)
Explanation of Solution
The
Nakashima Gallery | |||
Petty Cash Fund | |||
Journal Entries | |||
Date | Accounts titles and Explanation | Debit | Credit |
Feb. 2 | Petty cash | $ 400.00 | |
Cash | $ 400.00 | ||
(Being Petty cash fund established) |
Requirement-2:
To determine
To prepare:
The Petty Cash payments report for the month of February
Requirement-2:
Expert Solution
![Check Mark](/static/check-mark.png)
Explanation of Solution
The Petty Cash payments report for the month of February is as follows:
Nakashima Gallery | |||
Petty Cash Payments Report | |||
For the month of February | |||
Reconciliation | Replenish Amount | ||
Fund Total (A) | $ 400.00 | ||
Payments:
| |||
Office Supplies Expenses (14.15+67.77) | $ 81.92 | ||
Merchandise Inventory (32.5+13.10) | $ 45.60 | ||
Delivery Expenses | $ 7.95 | ||
Mileage Expenses | $ 68.00 | ||
Postage Expenses (20+54) | $ 74.00 | ||
Total Payments (B) | $ 277.47 | $277.47 | |
Recorded Amount on Hand (C) =A-B = | $ 122.53 | ||
Actual Amount on Hand (D) | $ 120.42 | ||
Cash Short/Over (E) = (C-D) | $ 2.11 | $ 2.11 | |
Amount to replenish = C+E= | $279.58 |
Requirement-3(a):
To determine
To prepare:
The journal entry for the replenishment of the petty cash fund
Requirement-3(a):
Expert Solution
![Check Mark](/static/check-mark.png)
Explanation of Solution
The journal entry for the replenishment of the petty cash fund is as follows:
Nakashima Gallery | |||
Petty Cash Fund | |||
Journal Entries | |||
Date | Accounts titles and Explanation | Debit | Credit |
Feb. 28 | Office Supplies Expenses (14.15+67.77) | $ 81.92 | |
Merchandise Inventory (32.5+13.10) | $ 45.60 | ||
Delivery Expenses | $ 7.95 | ||
Mileage Expenses | $68.00 | ||
Postage Expenses (20+54) | $ 74.00 | ||
Cash Short/Over (Balancing Figure) | $ 2.11 | ||
Cash (400-120.42) | $ 279.58 | ||
(Being Petty cash fund replenished) |
Requirement-3(b):
To determine
To prepare:
The journal entry for the increase in the petty cash fund
Requirement-3(b):
Expert Solution
![Check Mark](/static/check-mark.png)
Explanation of Solution
The journal entry for the increase in the petty cash fund is as follows:
Nakashima Gallery | |||
Petty Cash Fund | |||
Journal Entries | |||
Date | Accounts titles and Explanation | Debit | Credit |
Feb. 28 | Petty cash | $ 100.00 | |
Cash | $ 100.00 | ||
(Being Petty cash fund raised) |
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Chapter 8 Solutions
Fundamental Accounting Principles
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Which of the following assets—inventory, building,...Ch. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Cash Over and Short P1 Record the journal entry...Ch. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Exercise 8-1 Analyzing internal control...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Exercise 8-15 Liquid assets and accounts...Ch. 8 - Prob. 16ECh. 8 - Prob. 1APSACh. 8 - Prob. 2APSACh. 8 - Prob. 3APSACh. 8 - Prob. 4APSACh. 8 - Prob. 5APSACh. 8 - Prob. 1BPSBCh. 8 - Prob. 2BPSBCh. 8 - Prob. 3BPSBCh. 8 - Prob. 4BPSBCh. 8 - Prob. 5BPSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1GLPCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Prob. 5BTNCh. 8 - Prob. 6BTN
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