Prepare journal entries for the following Establish a Petty

Prepare journal entries for the following:

Establish a Petty Cash Fund for Juliet’s Nutrition Counseling Services for $200.00

Prepare a Petty Cash Payment Report for the month of January 2018. The receipts in the petty cash box are as follows:

Paid for Office Supplies of 22.50.

Purchased photocopy toner for 45.50.

Paid a courier 15.25 to deliver merchandise sold to a customer.

Purchased 25.00 of stamps.

Paid 28.00 COD charges for merchandise purchased for resale. Assume the use of a perpetual inventory system.

Reimbursed Jim Jones 35.00 for business auto expenses.

The cash left in the box amounted to 22.85.

Replenish the fund and increase the Petty Cash Fund to $250.

Solution

Sep-09 Petty Cash $ 200.00 Cash $ 200.00 Sep-30 Office supplies $    22.50 Photocopy tuner expenses $    45.50 Courier charges $    15.25 Stamps expenses $    25.00 Inventory $    28.00 Business auto expenses $    35.00 Cash Shortage $      5.90 Petty Cash $ 177.15 (being amounts expended from petty cash) Oct-01 Petty Cash ($250-$22.85) $ 227.15 Cash $ 227.15 (being amount needed to top up the petty cash box to $250)