Question
I need help with Inoke Gallery?
Inoke Gallery had the following petty cash transactions in February of the current year: Feb. 2 Wrote a $300 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier. 5 Purchased bond paper for the copier for $10.13 that is immediately used. 9 Paid $22.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Metro uses the perpetual system to account for merchandise inventory. 12 Paid $9.95 postage to express mail a contract to a client. 14 Reimbursed Alli Buck, the manager, $58 for business mileage on her car. 20 Purchased stationery for $77.76 that is immediately used. 23 Paid a courier $18 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $15.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $64 for postage expenses. 28 The fund had $21.23 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. The fund amount is also increased to $400. 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. Sort the payments into the appropriate categories and total the expenditures in each category. 3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount. Check (3a & 3b) Cr. Cash $ 378.77
5 months ago - 1 answers
Best Answer
Chosen by Asker
Required 1. Prepare the journal entry to establish the petty cash fund. Dr Petty cash $300 Cr Cash $300 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. Petty cash payments report for February 5 Office supplies expense $10.13 9 Merchandise inventory $22.50 - COD shipping charges 12 Postage expense $9.95 14 Mileage expense - Alli Buck $58 20 Office supplies expense $77.76 23 Delivery expense $18 25 Merchandise inventory $15.10 27 Postage expense $64 Total spent $275.44 28 The fund had $21.23 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. The fund amount is also increased to $400. Sort the payments into the appropriate categories and total the expenditures in each category. Office supplies expense $87.89 Merchandise inventory $37.60 Postage expense $73.95 Mileage expense $58.00 Delivery expense $18.00 Total disbursed $275.44 3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount Dr Petty cash $100.00 Dr Office supplies expense $87.89 Dr Merchandise inventory $37.60 Dr Postage expense $73.95 Dr Mileage expense $58.00 Dr Delivery expense $18.00 Dr Cash over and short $3.33 Cr Cash $378.77 (to reimburse and increase the petty cash fund)
by Sandy
5 months ago
Asker's Rating: 