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Question - On October 1, 2011, ABC Co. established a $200 petty cash fund. At the end of October the petty cash fund contained:
Cash on hand $15.25
Transactions for the month from the petty cash fund.
Oct 15 Entertainment $ 65.00
Oct 17 Postage 35.75
Oct 23 Taxi 16.80
Oct 31 Deliveries 80.00
Required -
a) Prepare the journal entry to establish the petty cash fund on October 1, 2011.
b) Record the daily transactions for the petty cash from October 1 to October 31.
c) Calculate the monthly totals and compute the ending balance.
d) Compute the amount that should be in the fund.
e) Calculate how much, if any, the account is over or short and identify if it is over or short.
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