Accountsguru

Problem 8-3

Falcon Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in April (the last month of the company’s fiscal year). For the journal entries, use the account titles listed in the Chart of Accounts on pages CA & CA-1 in the back of the textbook.

Prepared a company check for to establish the petty cash fund.

Prepared a company check both to replenish the fund for the following expenditures made since April 1 .

Paid for janitorial services. Paid to deliver merchandise to a customer, terms FOB destination. Paid postage expenses of . Paid for miscellaneous expense items. Counted remaining in the petty cash box.

The company decides that the in the fund was too much. It decreases the fund by leaving a total of .

The petty cashier reports that remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since April 15.

Paid postage expenses of . Reimbursed the office manager for business mileage, . Paid for newspaper advertisement.

The company decides that the April 16 decrease to the fund was too little. It decreases the fund by another leaving a total of .

Required

Prepare journal entries to establish the fund on April 1, to replenish it on April 15 and on April 30, and to reflect any increase or decrease in the fund balance on April 16 and April 30.

Check Apr 30, credit to cash,

300.00$ 100.00$

145.00$

200.00$ 100.00$

55.00$

April

15

1

16

46.00$ 90.00$

400.00$

400.00$

90.00$ a.    b.   

c.    d.    e.   

50.00$

55.00$

121.00$

155.00$

46.00$

30

30

g. h.   

f.