Problem 8-2A Formey Company maintains a petty cash fund for small expenditures.
ID: 2544649 • Letter: P
Question
Problem 8-2A Formey Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-mornth perod y1 Established petty cash fund by writing a check on Seranton Bank for $210 1 $206.60. On this date the fund consisted of s340 in cah and the following petty c Replenished the petty cash fund by witing a checkfor 31 Replenished the petty cash fund by weriting a check for $201.70. A this date, the fund consisted of $8.30 in cash and the following petty cash receipts: freight-out 80.70, charitable contributions expense 545.oo 15 Replenished the petty cash hnd by-tingcheck ,or si 96.90. On this date, the nnd on a sted of S13 aon an and the tale a petty anenetteatao, aea see as 16 Inoressed the amount of the petty cash fund to $310 by writing a check for $100 1 Reolenished the petty cash fund by witing acheck for $29443 On this dce, the fund consisted of $15.60 in cash and the following petty cash receijts: pootagn expense $142.00, travel espense 8 iew Score meceipts freight-ou $2.00, pae espense 141.20, entrtainment ournalize the petity cash transactions. (Credit account titles are automatically indented when amount is entered. Do mot indlent manually. Round answers to 2 decimal places,eg Sa.rs) uy 15Explanation / Answer
Date Account Titles and Explanation Debit Credit Jul-01 Petty Cash 210.00 Cash 210.00 (To record establishment of petty cash fund) Jul-15 Freight-out 92.00 Postage expenses 41.20 Entertainment expense 46.20 Miscellaneous expense 25.90 Cash short or over 1.30 Cash 206.60 (To record replenishment of petty cash fund) Jul-31 Freight-out 80.70 Charitable contributions expense 45.00 Postage expenses 49.50 Miscellaneous expense 26.50 Cash 201.70 (To record replenishment of petty cash fund) Aug-15 Freight-out 74.20 Entertainment expense 41.90 Postage expenses 32.20 Miscellaneous expense 49.90 Cash short or over 1.30 Cash 196.90 (To record replenishment of petty cash fund) Aug-16 Petty Cash 100.00 Cash 100.00 (To record increase in petty cash fund balance) Aug-31 Postage expense 142.00 Travel expense 96.10 Freight-out 54.60 Cash short or over 1.70 Cash 294.40 (To record replenishment of petty cash fund) Petty Cash Date Explanation Ref. Debit Credit Balance Jul-01 CP 210 210 Aug-16 CP 100 310