September 2023 Biscay Bay Boats established a petty cash fund for minor day to day expenses Following are activities
2024 Accounting Help Assignment Help
Biscay Bay Boats established a petty cash fund for minor day to day expenses Following are activities 2023
Biscay Bay Boats established a petty cash fund for minor day-to-day expenses. Following are activities related to this fund. Prepare the necessary journal entries for petty cash. (1) Established a $500 petty cash fund by writing a check to “cash,” cashing the check, and placing the proceeds in a petty cash box entrusted to Herman Jones as custodian. (2) At the end of the month, the petty cash fund contained remaining cash of $127, and receipts for $65 postage, $123 office supplies, and $180 gasoline for company vehicles. Herman is not sure why the fund is short $5. A check payable to cash in the amount of $373 was prepared, and the funds were placed into the box. (3) At the end of the next month, the petty cash fund contained remaining cash of $35, and receipts for $265 postage, $160 office supplies, and $40 gasoline for company vehicles. A check payable to cash in the amount of $715 was prepared, and the funds were placed into the box. This amount reimburses the fund and increases its balance to $750. GENERAL JOURNAL Date Accounts Debit Credit #1 To establish a $500 petty cash fund #2 To record expenses and replenishment of petty cash #3 To record expenses and replenishment/increase to petty cash
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