Forney Company maintains a petty cash fund for small expenditures. The following
ID: 2473694 • Letter: F
Question
Forney Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.
Replenished the petty cash fund by writing a check for $308.70. On this date, the fund consisted of $16.30 in cash and the following petty cash receipts: postage expense $139.20, travel expense $95.20, and freight-out $72.50.
Journalize the petty cash transactionsPost to the Petty Cash account
July 1 Established petty cash fund by writing a check on Scranton Bank for $205. 15 Replenished the petty cash fund by writing a check for $201.30. On this date the fund consisted of $3.70 in cash and the following petty cash receipts: freight-out $93.00, postage expense $40.80, entertainment expense $47.10, and miscellaneous expense $18.80. 31 Replenished the petty cash fund by writing a check for $196.30. At this date, the fund consisted of $8.70 in cash and the following petty cash receipts: freight-out $80.10, charitable contributions expense $44.40, postage expense $43.60, and miscellaneous expense $28.20. Aug. 15 Replenished the petty cash fund by writing a check for $191.60. On this date, the fund consisted of $13.40 in cash and the following petty cash receipts: freight-out $73.40, entertainment expense $41.40, postage expense $32.30, and miscellaneous expense $45.80. 16 Increased the amount of the petty cash fund to $325 by writing a check for $120. 31Replenished the petty cash fund by writing a check for $308.70. On this date, the fund consisted of $16.30 in cash and the following petty cash receipts: postage expense $139.20, travel expense $95.20, and freight-out $72.50.
Journalize the petty cash transactionsPost to the Petty Cash account
Explanation / Answer
Date Accounts Titles and Explanation Debit Credit 1-Jul Petty cash $205.00 Cash $205.00 15-Jul Freight-out $93.00 Postage expense $40.80 Entertainment expense $47.10 Miscellaneous expense $18.80 Cash over and short $1.60 Cash $201.30 31-Jul Freight-out $80.10 Postage expense $43.60 Charitable contributions expense $44.40 Miscellaneous expense $28.20 Cash $196.30 15-Aug Freight-out $73.40 Postage expense $32.30 Entertainment expense $41.40 Miscellaneous expense $45.80 Cash over and short $1.30 Cash $191.60 16-Aug Petty cash $120.00 Cash $120.00 31-Aug Postage expense $139.20 Travel expense $95.20 Freight-out $72.50 Cash over and short $1.80 Cash $308.70