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Handling a Petty Cash Fund Rivers Edge Canoe & Kayak petty cash fund was established on
Chapter 22, Problem 22-8(choose chapter or problem)
Handling a Petty Cash Fund
River’s Edge Canoe & Kayak petty cash fund was established on February 1 for $100, by writing check 1763. The accounts for which petty cash disbursements are likely to be made include Supplies, Gas Expense, Advertising Expense, Delivery Expense, and Miscellaneous Expense.
Instructions
1. In your working papers, record the entry to establish the petty cash fund on page 12 of a general journal.
2. Record the establishment of the fund on the first line of the petty cash register, page 1.
3. Record each petty cash disbursement in the petty cash register.
4. Foot, prove, total, and rule the petty cash register on February 28.
5. Reconcile the petty cash fund. The amount in the petty cash box is $1.50.
6. Prepare a petty cash requisition. Sign your name as petty cashier.
7. Record the entry to replenish the petty cash fund by issuing Check 1798 in the general journal, page 15.
8. Record the replenishment information in the petty cash register.
9. The accountant believes the petty cash fund should be increased by $25. Record the issuance of Check 1799 on February 28.
Analyze List the petty cash disbursements that are charged to the Miscellaneous Expense account.
Questions & Answers
QUESTION:
Handling a Petty Cash Fund
River’s Edge Canoe & Kayak petty cash fund was established on February 1 for $100, by writing check 1763. The accounts for which petty cash disbursements are likely to be made include Supplies, Gas Expense, Advertising Expense, Delivery Expense, and Miscellaneous Expense.
Instructions
1. In your working papers, record the entry to establish the petty cash fund on page 12 of a general journal.
2. Record the establishment of the fund on the first line of the petty cash register, page 1.
3. Record each petty cash disbursement in the petty cash register.
4. Foot, prove, total, and rule the petty cash register on February 28.
5. Reconcile the petty cash fund. The amount in the petty cash box is $1.50.
6. Prepare a petty cash requisition. Sign your name as petty cashier.
7. Record the entry to replenish the petty cash fund by issuing Check 1798 in the general journal, page 15.
8. Record the replenishment information in the petty cash register.
9. The accountant believes the petty cash fund should be increased by $25. Record the issuance of Check 1799 on February 28.
Analyze List the petty cash disbursements that are charged to the Miscellaneous Expense account.
ANSWER:Step 1 of 9
Petty cash fund is prepared for making reimbursements regarding incidental cash expenditures incurred by a business entity. In this fund, there is an amount allocated for paying off the petty cash charges. It is maintained and kept in custody of an individual known as petty cash accountant.