On January 1, 2016, Clifton Company established an imprest petty cash fund of $6

Question

On January 1, 2016, Clifton Company established an imprest petty cash fund of $600. By March 31, 2016, when the fund was replenished, the following petty cash vouchers had been issued: January 26, postage, $48; February 16, postage, $52; February 6, airport limousine fares, $24; January 18, office supplies, $67; March 8, postage, $38; March 4, Local Express delivery charges on purchases, $65. There was $309 in coins and currency left in Petty Cash before replenishment.

Required:

a. Prepare the journal entries to record the transactions relating to Clifton Company's petty cash fund for the first quarter of 2016.

b. On April 1, the size of the petty cash fund was increased to $650. What journal entry (if any) is necessary to record this action?

Explanation / Answer

a Petty cash 600      Cash 600 Postage Expense 138 =48+52+38 Transportation Expense 24 Office Supplies Expense 67 Freight-In 65       Cash 291       Cash Short and Over 3 b Petty cash 50      Cash 50

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.