Question

Harristown Hockey Club (HHC) maintains a petty cash fund for minor club expenditures. The petty cash custodian, Wayne Crosby, describes the events that occurred during the last two months:

1. I established the fund by cashing a check from HHC for $300 made payable to me.
2. Tom Canuck provided a $88 receipt for repairs to the club’s computer, so I paid $88 cash to him.
3. Kim Harra provided a receipt for $68 for various supplies she planned to use to decorate the arena later this year. I paid $68 cash to her.
4. Trainer Jim bought some equipment that the club intends to use for the next few years. He gave me the receipt and I paid him $98.
5. On the last day of the month, I prepared a summary of expenditures and requested the fund be replenished. I received and cashed a check from HHC for $254, placing the cash into a locked cash box.
6. Wendy Wignes provided receipts for supplies purchased for the club’s office for use next month. I paid $143 cash to her.
7. Destiny Hook provided a phone bill showing she had paid $48 for telephone calls made to contact referees for the annual tournament. I paid her $48 cash.
8. Gutty McTavish submitted a receipt for $53 for a haircut he received. I did not pay him.
9. On the last day of the month, I received and cashed a check from HHC for $191, placing the cash into the locked cash box.

1. Prepare journal entries where required. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
2. If HHC has $1,900 cash, $500 of government Treasury bills purchased four months ago, $930 of cash set aside for its workers' compensation insurance, and the petty cash amount from above, how much will the company report on the balance sheet as "Cash and Cash Equivalents"?

Answer 1

	Journal Entries in the books of HHC
Sl No	Particulars	Debit	Credit
		$	$
1	Cash	300
	Bank		300
	(establishment of the petty cash fund)
2	Computer Repairs	88
	Cash		88
	(paid to Tom for computer repairs)
3	Maintainence Expenses	68
	Cash		68
	(Paid to Kim Harris to decorate the arena)
4	Equipment Account	98
	Cash		98
	(Paid Jim for the equipments)
5	Cash	254
	Bank		254
	(Cash withdrawn to replenish petty cash fund)
6	Office Supplies	143
	Cash		143
	(Paid Wendy Wignes for office supplies)
7	Telephone Expenses	48
	Cash		48
	(Reimbursed phone charges of destiny hook)
8	No Entry
	(No entry for Gutty's hair cut)
9	Cash	191
	Bank		191
	(Cash withdrawn to replenish petty cash fund)

	Cash And Cash Equivalents	$
1	HHC's Cash	1900
2	Government Treasury Bills	500
3	Cash for workers comp insurance	930
4	Petty Cash fund	300
	Total cash and cash equivalents	3630
Note : The company will report $3630 on the balance sheet as "cash and cash equivalents"

	Working for petty cash
(A)	Opening Petty cash fund	300
(B)	cash drawn to replenish petty cash fund	445
( C )	cash spent for various activities(as above)	445
	Closing Petty cash fund(A+B)-C	300