Lakeland's Business Department completed the following petty cash transactions during July 2020: July 5 Prepared a...
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Lakeland's Business Department completed the following petty cash transactions during July 2020: July 5 Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Cassandra Kirkland, the petty cashier. 6 Paid $35 COD charges on merchandise purchased for resale. Lakeland uses the perpetual method to account for merchandise inventory. 11 Paid $46 delivery charges on merchandise sold to a customer. Purchased file folders, $38. 12 18 Purchased paper for printer, $62. 27 Paid $28 COD charges on merchandise purchased for resale. 28 Purchased stamps, $52. 30 Reimbursed John Turvey $125 for business car expenses. 31 Cassandra Kirkland sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $105 in cash in the fund. In addition, the size of the petty cash fund was decreased to $400. Required: 1. Prepare a general journal entry to record establishing the petty cash fund. 2. Prepare a Petty Cash Payments Report similar to Exhibit 7.3 that has these categories: delivery expense, auto expense, postage expense, merchandise inventory, and office supplies. 3. Prepare the general journal entry to record the reimbursement and the decrease of the fund. Lakeland's Business Department completed the following petty cash transactions during July 2020: July 5 Prepared a $500 cheque, cashed it, and turned the proceeds and the petty cash box over to Cassandra Kirkland, the petty cashier. 6 Paid $35 COD charges on merchandise purchased for resale. Lakeland uses the perpetual method to account for merchandise inventory. 11 Paid $46 delivery charges on merchandise sold to a customer. Purchased file folders, $38. 12 18 Purchased paper for printer, $62. 27 Paid $28 COD charges on merchandise purchased for resale. 28 Purchased stamps, $52. 30 Reimbursed John Turvey $125 for business car expenses. 31 Cassandra Kirkland sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $105 in cash in the fund. In addition, the size of the petty cash fund was decreased to $400. Required: 1. Prepare a general journal entry to record establishing the petty cash fund. 2. Prepare a Petty Cash Payments Report similar to Exhibit 7.3 that has these categories: delivery expense, auto expense, postage expense, merchandise inventory, and office supplies. 3. Prepare the general journal entry to record the reimbursement and the decrease of the fund.
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Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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