Question

Blues Music Center had the following petty cash transactions in March of the current year.
March 5 Wrote a $ 250 check, cashed it, and gave the proceeds and the petty cashbox to Jen Rouse, the petty cashier.
6 Paid $ 12.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Blues uses the perpetual system to account for merchandise inventory.
11 Paid $ 10.75 delivery charges on merchandise sold to a customer, terms FOB destination.
12 Purchased file folders for $ 14.13 that are immediately used.
14 Reimbursed Bob Geldof, the manager, $ 11.65 for office supplies purchased and used.
18 Purchased printer paper for $ 20.54 that is immediately used.
27 Paid $ 45.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
28 Paid postage expenses of $ 18.
30 Reimbursed Geldof $ 56.80 for business car mileage.
31 Cash of $ 61.53 remained in the fund. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
31 The petty cash fund amount is increased by $ 50 to a total of $ 300.

Required
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for March 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 expenses in each category.
3. Prepare the journal entries (in dollars and cents) for part 2 to both (a) Reimburse (b) Increase the fund amount.



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  • CreatedNovember 26, 2013
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