NetPerks Co. establishes a $200 petty cash fund on January 1. On January 8, the

Question

NetPerks Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $28 in cash along with receipts for the following expenditures: postage, $64; transportation-in, $19; delivery expenses, $36; and miscellaneous expenses, $53. NetPerks uses the perpetual system in accounting for merchandise inventory. 9.value: (1) Prepare journal entry to establish the fund on January 1. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 1 10. value: (2) Prepare journal entry to reimburse it on January 8. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 8 11.value: (3) Prepare journal entries to both reimburse the fund and increase it to $500 on January 8, assuming no entry in part 2. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 8

Explanation / Answer

1) Prepare journal entry to establish the fund on January 1. (Omit the "$" sign in your response.) Date Jan. 1 Debit 'Petty Cash' 200 Credit 'Cash' 200 -------- (2) Prepare journal entry to reimburse it on January 8. (Omit the "$" sign in your response.) Jan. 8 Debit 'Postage Expense' 47 Debit 'Transportation-in' 11 Debit 'Delivery Expenses' 13 Debit 'Miscellaneous Expenses' 36 Credit 'Cash' 107 ---------- (3) Prepare journal entries to both reimburse the fund and increase it to $250 on January 8, assuming no entry in part 2. (Omit the "$" sign in your response.) Jan. 8 Debit 'Postage Expense' 47 Debit 'Transportation-in' 11 Debit 'Delivery Expenses' 13 Debit 'Miscellaneous Expenses' 36 Debit 'Petty Cash' 50 Credit 'Cash' 157

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