Halle\'s Berry Farm establishes a $350 petty cash fund on September 4 to pay for

Question

Halle's Berry Farm establishes a $350 petty cash fund on September 4 to pay for minor cash expenditures. The fund is r manager to make purchases. Expenditures for the month include the following items: Office party decorations (petty cash) s 70 100 Lawn maintenance (credit card) Postage (credit card) Fuel for deliveries (credit card 65 Required: Record the establishment of the petty cash fund on September 4, all expenditures made during the month, and the reple entry required" in the first account field.)

Explanation / Answer

Halle’s Berry Farm

Entries

Date

Account Titles and Explanation

Ref. No.

Debit

Credit

4-Sep

Petty Cash

$350

Cash

$350

(To record the establishment of petty cash fund)

30-Sep

Entertainment Expense

$70

Repairs and Maintenance Expense

$100

Postage Expense

$55

Fuel Expenses

$65

Petty Cash

$70

Accounts Payable

$220

(To record the expenses paid out of petty cash and credit card)

30-Sep

Petty Cash

$70

Cash

$70

(To record replenishment of petty cash fund)

Note:

The petty cash fund is used to pay the expense for office party decorations in September and all the other expense are paid using credit card. Hence the replenishment would be to the extent of cash used for entertainment expense, $70.

Date

Account Titles and Explanation

Ref. No.

Debit

Credit

4-Sep

Petty Cash

$350

Cash

$350

(To record the establishment of petty cash fund)

30-Sep

Entertainment Expense

$70

Repairs and Maintenance Expense

$100

Postage Expense

$55

Fuel Expenses

$65

Petty Cash

$70

Accounts Payable

$220

(To record the expenses paid out of petty cash and credit card)

30-Sep

Petty Cash

$70

Cash

$70

(To record replenishment of petty cash fund)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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