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On 1 January, Martin Co establishes a petty cash fund in theamount of $500. On 31 January, the fund is replenished. beforereplenishment there was $128.75 remaining in the petty cash drawerand the following receipts:

parking fees- $103.50

Postage- $50

Office Supplies- $198

Miscellaneous expenses- $22

Prepare all journal entries necessary to record theestablishment and replenishment of the fund.

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Collen Von
Collen VonLv2
28 Sep 2019

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LO 4) Havermill Co. establishes a $280 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $76 for Office Supplies, $143 for merchandise inventory, and $25 for miscellaneous expenses. The fund has a balance of $36. On October 1, the accountant determines that the fund should be increased by $56. The journal entry to record the reimbursement of the fund on September 30 includes a:

Multiple Choice

Debit to Office Supplies for $76.

Credit to Merchandise Inventory for $143.

Credit to Cash for $280.

Debit Petty Cash for $244.

Credit to Cash for $36.

Imprest (Petty Cash) Transaction

P 4. A small company maintains a petty cash fund for minorexpenditures. The following transactions occurred in June and July2011:

a. The fund was established in the amount of $300.00 on June 1from the pro- ceeds of check no. 1515.

b.OnJune30,thepettycashfundhadcashof$46.38andthefollowingreceipts onhand: postage, $120.00; supplies, $74.82; delivery service, $37.20;and rub- ber stamp, $21.60. Check no. 1527 was drawn to replenishthe fund.

c. On July 31, the petty cash fund had cash of $66.18 and thefollowing receipts on hand: postage, $102.60; supplies, $98.52; anddelivery service, $19.20. The petty cash custodian could notaccount for the shortage. Check no. 1621 was written to replenishthe fund.

Required

1. In journal form, prepare the entries necessary to record eachof these transactions.

2. A charity reimburses volunteers for small out-of-pocketexpenses such as parking and gasoline when the volunteers arecarrying out the business of the charity. How might an imprest(petty cash) fund be helpful in controlling these expenditures?

Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).

May 1 Prepared a company check for $350 to establish the petty cash fund.
15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $109.20 for janitorial services.
b. Paid $89.15 for miscellaneous expenses.
c. Paid postage expenses of $60.90.
d. Paid $80.01 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $26.84 remaining in the petty cashbox.
16 Prepared a company check for $200 to increase the fund to $550.
31 The petty cashier reports that $370.27 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $59.10.
g. Reimbursed the office manager for business mileage, $47.05.
h. Paid $48.58 to deliver merchandise to a customer, terms FOB destination.
31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $500.


Required:
1. Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)

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