Turner Excavation maintains a checking account and has decided to open a petty c

Question

Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July: July 2 Established a petty cash fund by issuing Check No. 301 for $100. 5 Paid S25 from the petty cash fund for postage. Voucher No. 1 7 Paid S30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2. 8 Paid S20 from the petty cash fund to repair a tire on the company truck Voucher No. 3 12 Paid S22 from the petty cash fund for a newspaper advertisement. Voucher No. 4. 13 Issued Check No. 303 to replenish the petty cash fund (Total and rule the petty cash payments record Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.) Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. !5 20 24 Paid S12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6 28 Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7, 31 Issued Check No. 308 to replenish the petty cash fund. (Total and rule the petty cash payments record Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.) The following additional transactions occurred during July: July 5 Issued Check No. 302 to pay office rent, $650 15 Issued Check No. 304 for office equipment, $525. 17 Issued Check No. 305 for the purchase of supplies, $133. 18 Issued Check No. 306 to pay attomey fees, $1,000 30 Issued Check No. 307 to pay newspaper for an advertisement, $200.20

Explanation / Answer

Ans.

DATE ACCOUNT TITLE P.R DEBIT CREDIT July 2 Petty Cash Fund 301 100 To Bank 100 (Established a petty cash fund by issuing check for $100) July-5 Postage 1 25 To Petty Cash Fund 25 (Being Postage Paid by cash) July-7 Miscellaneous Expenses 2 30 To Petty Cash Fund 30 (Being Cash Paid for Delivery of flowers of $30) July-8 Repair & Maintenance 3 20 To Petty Cash Fund 20 (Being Cash Paid for Repair a tyre of comapny truck of $20) July12 Advertisement Expenses 4 22 To Petty Cash Fund 22 (Being Cash Pad for Newspaper advertisement of $22) July13 Petty cash fund 303 97 To Bank 97 (Being check issue for petty cash fund ) July20 Employee Reimburse Expenses 5 26 To Petty Cash Fund 26 (Being Cash Paid for Reimburse an employee for expenses incurred to repair the company truck ) July24 Telephon Expenses 6 12.50 To Petty cash Fund 12.50 (Being cash Paid for telephon calls from a phon booth of $ 12.50) July28 YMCA Contribution 7 25 TO Petty Cash Fund 25 (Being cash paid for contribution to the YMCA ) July31 Petty cash fund 304 36.50 To Bank 36.50 (Being check issue for petty cash fund ) July-5 Office Rent 302 650 To Bank 650 (Being check issue for office rent of $650) July15 Office equipment 304 525 To Bank 525 (Being check issue for office equipment of $ 525) july17 Purchases 305 133 To Bank 133 (Being check issue for purchases of supplies of $133)

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