value: 4.60 points Exercise 6-6 Petty cash fund accounting LO P2 Palmona Co. est

Question

value: 4.60 points Exercise 6-6 Petty cash fund accounting LO P2 Palmona Co. establishes a $290 petty cash fund on January 1. On January 8, the fund shows $181 in cash along with receipts for the following expenditures: postage, $44; transportation-in, $15; delivery expenses $17; and miscellaneous expenses, $33. Palmona uses the perpetual system in accounting for merchandise inventory Prepare journal entry to establish the fund on January 1, reimburse it on January 8, and reimburse the fund and increase it to $340 on January 8, assuming no entry in part 2. (Hint: Make two separate entries for part View transaction list Journal entry worksheet Record the journal entry to establish the Petty Cash fund Note: Enter debits before credits Date General Journal Debit Credit Jan.1 Record entry Clear entry View general journal

Explanation / Answer

Date General Journal Debit Credit Jan 01 Petty cash $290 Cash $290 Jan 08 Postage expense $44 Merchandise inventory $15 Delivery expense $17 Miscellaneous expenses $33 Cash $109 Jan 08 Petty cash $50 Cash $50

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