Reference no: EM13356476
Journals and petty cash payments report.
Inuke Gallery had the following petty cash transactions in February of the current year:
Feb. 2 Wrote a $300 check, cashed it, and gave the proceeds and the petty cashbox 10 Bo Brown, Establish, reimburse, and increase the petty cashier, petty cash 5 Purchased bond paper for the copier for $10.13 that is immediately used.
|
9
|
Paid $22.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Metro uses the perpetual system to account for merchandise inventory.
|
|
12
|
Paid $9.95 postage to express mail a contract 10 a client.
|
|
14
|
Reimbursed Alli Buck, the manager, $58 for business mileage on her car.
|
|
20
|
Purchased stationery for $77.76 that is immediately used.
|
|
23
|
Paid a courier $18 to deliver merchandise sold to a customer, terms FOB destination.
|
|
25
|
Paid $15.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
|
|
27
|
Paid $64 for postage expenses.
|
|
28
|
The fund had $21.23 remaining in the petty cash box, sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
|
The fund amount is also increased to $400.
Required
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
Sort the payments into the appropriate categories and total the expenditures in each category.
3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.