Accounting Homework Week 3
bfwneysqt85
hw20ch20620b-06.0520petty20cash.xlsProblem
| Biscay Bay Boats established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary journal entries for petty cash. | |
| (1) | Established a $500 petty cash fund by writing a check to "cash," cashing the check, and placing the proceeds in a petty cash box entrusted to Herman Jones as custodian. |
| (2) | At the end of the month, the petty cash fund contained remaining cash of $127, and receipts for $65 postage, $123 office supplies, and $180 gasoline for company vehicles. Herman is not sure why the fund is short $5. A check payable to cash in the amount of $373 was prepared, and the funds were placed into the box. |
| (3) | At the end of the next month, the petty cash fund contained remaining cash of $35, and receipts for $265 postage, $160 office supplies, and $40 gasoline for company vehicles. A check payable to cash in the amount of $715 was prepared, and the funds were placed into the box. This amount reimburses the fund and increases its balance to $750. |
&R&"Myriad Web Pro,Bold"&20B-06.05
B-06.05
Worksheet
| GENERAL JOURNAL | |||||
| Date | Accounts | Debit | Credit | ||
| #1 | |||||
| To establish a $500 petty cash fund | |||||
| #2 | |||||
| To record expenses and replenishment of petty cash | |||||
| #3 | |||||
| To record expenses and replenishment/increase to petty cash |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-06.05
B-06.05
