Turner Excavation maintains a checking account and has decided to open a petty c
ID: 2594222 • Letter: T
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:
The following additional transactions occurred during July:
Required:
July 2 Established a petty cash fund by issuing Check No. 301 for $100. 5 Paid $25 from the petty cash fund for postage. Voucher No. 1. 7 Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2. 8 Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3. 12 Paid $22 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.) 20 Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5. 24 Paid $12.50 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.)Explanation / Answer
1. Petty Cash Payments Record
Date
Voucher No
Amount Deposit
Amount Withdrawn
Balance
Description
July 2
Check No 301
100
100
Petty Cash made
July 5
1
25
75
Postage expense
July 7
2
30
45
Delivery of flowers
July 8
3
20
25
Repair of truck tire
July 12
4
22
3
Advertisement in news
July 13
Check 303
97
100
Total Petty Cash payments = $97
July 20
5
26
74
Reimbursement to employee for truck repair
July 24
6
12.50
61.5
Phone call made
July 28
7
25
36.5
Donation to YMCA
July 31
Check 308
63.5
100
Total Petty Cash payments = $63.5, balance = $36.5
2. Petty Cash Journal Entries
Date
Account
Debit
Credit
July 2
Petty Cash
TO Bank
100
100
July 5
Postage Expense
TO Petty Cash
25
25
July 7
Miscellaneous Expense
TO Petty Cash
30
30
July 8
Repair & Maintenance
TO Petty Cash
20
20
July 12
Advertisement Expense
TO Petty Cash
22
22
July 13
Petty Cash
TO Bank
(100 – 25 – 30 – 20 -22) = $3
97
97
July 20
Repair & Maintenance
TO Petty Cash
26
26
July 24
Telephone Expense
TO Petty Cash
12.50
12.50
July 28
Donation
TO Petty Cash
25
25
July 31
Petty Cash
TO Bank
(100 – 26 – 12.50-25) = $36.5
63.5
63.5
Date
Voucher No
Amount Deposit
Amount Withdrawn
Balance
Description
July 2
Check No 301
100
100
Petty Cash made
July 5
1
25
75
Postage expense
July 7
2
30
45
Delivery of flowers
July 8
3
20
25
Repair of truck tire
July 12
4
22
3
Advertisement in news
July 13
Check 303
97
100
Total Petty Cash payments = $97
July 20
5
26
74
Reimbursement to employee for truck repair
July 24
6
12.50
61.5
Phone call made
July 28
7
25
36.5
Donation to YMCA
July 31
Check 308
63.5
100
Total Petty Cash payments = $63.5, balance = $36.5
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