Log in
Accounting
2
answers
0
watching
12
views
27 Nov 2019

1- Omar Co. maintains a monthly petty cash fund of 1,800 SAR. InSeptember 2017, there are several withdrawing from the petty cashas follows:

o Travel expenses 410

o Mail postage 324.80

o Office supplies 270

o Petrol supplies 365.50

o Customer business lunches 193 The balance of petty cash in30th of September 2017 was 232.70

a. How much cash is required to replenish the petty cashfund?

b. Journalize the replenish petty cash fund? (3 Marks)

Watch
2
answers
0
watching
12
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Get unlimited access
Already have an account? Log in
Share
Irving Heathcote
Irving HeathcoteLv2
4 Jan 2019
Get unlimited access
Already have an account? Log in
Share

Related questions

Journalize and post petty cash fund transactions.

(LO 2)

Forney Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.

July 1
Established petty cash fund by writing a check on Scranton Bank for $200.
15
Replenished the petty cash fund by writing a check for $196.00. On this date the fund consisted of $4.00 in cash and the following petty cash receipts: freight-out $92.00, postage expense $42.40, entertainment expense $46.60, and miscellaneous expense $11.20.
31
Replenished the petty cash fund by writing a check for $192.00. At this date, the fund consisted of $8.00 in cash and the following petty cash receipts: freight-out $82.10, charitable contributions expense $45.00, postage expense $25.50, and miscellaneous expense $39.40.
Aug. 15
Replenished the petty cash fund by writing a check for $187.00. On this date, the fund consisted of $13.00 in cash and the following petty cash receipts: freight-out $77.60, entertainment expense $43.00, postage expense $33.00, and miscellaneous expense $37.00.
16
Increased the amount of the petty cash fund to $300 by writing a check for $100.
31
Replenished the petty cash fund by writing a check for $284.00. On this date, the fund consisted of $16 in cash and the following petty cash receipts: postage expense $140.00, travel expense $95.60, and freight-out $47.10.
Instructions
(a)

Journalize the petty cash transactions.

July 15, Cash short $3.80

(b)

Post to the Petty Cash account.

Aug. 31 balance $300

(c)

What internal control features exist in a petty cash fund?

P8-2A Winningham Company maintains a petty cash fund forsmallexpenditures.The following
transactions occurred over a 2-month period.
July 1 Established petty cash fund by writing a check on CubsBankfor $200.
15 Replenished the petty cash fund by writing a check for$196.00.On this date the fund consisted
of $4.00 in cash and the following petty cash receipts:freight-out$94.00, postage expense
$42.40, entertainment expense $46.60, and miscellaneousexpense$11.20.
31 Replenished the petty cash fund by writing a check for$192.00.At this date, the fund
consisted of $8.00 in cash and the following petty cashreceipts:freight-out $82.10,
charitable contributions expense $45.00, postage expense$25.50, andmiscellaneous
expense $39.40.
Aug. 15 Replenished the petty cash fund by writing a checkfor$187.00. On this date, the fund
consisted of $13.00 in cash and the following petty cashreceipts:freight-out $75.60, entertainment
expense $43.00, postage expense $33.00, and miscellaneousexpense$37.00.
16 Increased the amount of the petty cash fund to $300 bywriting acheck for $100.
31 Replenished petty cash fund by writing a check for $284.00.Onthis date, the fund consisted
of $16 in cash and the following petty cash receipts:postageexpense $140.00,
travel expense $95.60, and freight-out $47.10.
Instructions
(a) Journalize the petty cash transactions.
(b) Post to the Petty Cash account.
(c) What internal control features exist in a petty cashfund?
Share:
by email on facebook on twitter

Suppose that on September 1, Lavene Motors opens a new showroomin Napanee, Ontario, and creates a petty cash fund with an imprestbalance of $500. During, September, Lisa Manfield, the fundcustodian, signs the petty cash tickets shown below.

TicketNo. Item Amount

1 Courier for packagereceived $49.67

2 Refreshments for showroomopening $101.00

3 Computerdisks $88.07

4 Officesupplies $7.50

5 Dinner money for sales managerentertainment $87.50

On September 30, prior to replenishment, the fund contains thesetickets plus $161.34. The accounts affected by petty cash paymentsare Office Supplies Expenses, Entertainment expenses, and DeliveryExpenses.

1. Explain the characteristics and the internal control features of animprest fund.

2. On September 30, how much cash should this petty cash fund holdbefore it is replenished?

3. Make the general journal entries to (A) create the fund and (B)replenish it. Include explanation.

4. Due to the risk of robbery, make the entry on October 1 to decreasethe fund balance to $400. Include explanation.

Req.1


Req. 2

Req. 3. (a) (creation ofthe petty cash fund)

General Journal

DATE

ACCOUNT TITLES AND EXPLANATIONS

POST. REF.

DEBIT

CREDIT

Ù­

Ù­

Ù­

Ù­ (b) (replenishment of the petty cash fund)

General Journal

DATE

ACCOUNT TITLES AND EXPLANATIONS

POST. REF.

DEBIT

CREDIT

(continued)P8-8B

Req. 4 (decreasing the amount of the petty cashfund)

General Journal

DATE

ACCOUNT TITLES AND EXPLANATIONS

POST. REF.

DEBIT

CREDIT

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in