Exercise 7-16 Journalize the petty cash transactions. (Round answers to 2 decima

Question

Exercise 7-16

Journalize the petty cash transactions. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 7-16: List of accounts to use

Exercise 7-16

Cullumber Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.
Aug.  1 Established the petty cash fund by writing a check payable to the petty cash custodian for $250.00. 15 Replenished the petty cash fund by writing a check for $200.00. On this date, the fund consisted of $50.00 in cash and these petty cash receipts: freight-out $49.40, entertainment expense $11.00, postage expense $8.70 and miscellaneous expense $128.10. 16 Increased the amount of the petty cash fund to $450.00 by writing a check for $200.00. 31 Replenished the petty cash fund by writing a check for $308.00. On this date, the fund consisted of $142.00 in cash and these petty cash receipts: postage expense $120.00, entertainment expense $165.60, and freight-out $21.40.

Explanation / Answer

Petty Cash Transactions are as journalized below:

Date Particulars L.F Amount ($) Amount ($) Aug-01 Petty Cash 250 Cash 250 (For petty cash fund established) Aug-15 Freight Out 49.4 Entertainment Expense 11 Postage Expense 8.7 Miscellaneous expense 128.1 Cash over and short 2.8 Petty cash 200 (For petty cash fund was replenished) Aug-16 Petty Cash 200 Cash 200 (For petty cash fund increased) Aug-31 Postage Expense 120 Entertainment Expense 165.6 Freight Out 21.4 Cash over and short 1 Petty cash 308 (For petty cash fund was replenished)

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