Question

onnewon Required information The following information applies to the questions displayed below 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: a. I established the fund by cashing a check from HHC for $310 made payable to me. b. Tom Canuck provided a $90 receipt for repairs to the club's computer, so I paid $90 cash to him. c. Kim Harra provided a receipt for $70 for various supplies she planned to use to decorate the arena later this year. I paid $70 cash to her d. 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 $100. e. 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 $260, placing the cash into a locked cash box. t Wendy Wignes provided receipts for supplies purchased for the club's office for use next month. I paid $145 cash to her. g. Destiny Hook provided a phone bill showing she had paid $50 annual tournament, I paid her $50 cash. h. Gutty McTavish submitted a receipt for $55 for a haircut he received. I did not pay him. LOn the last day of the month, I received and cashed a check from HHC for $195, placing the cash into the locked cash box contact referees for the telephone calls 2. If HHC has $2,000 cash, $500 of government Treasury bills purchased four months ago, and $950 of cash set aside for its workers compensation insurance, how much will the company report on the balance sheet as "Cash and Cash Equivalents ? Cash and Cash Equivalents

Answer 1

1) Journal Entries:
No	Transaction	General Journal	Debit	Credit
1	a)	Petty Cash	$310
		Cash		$310
		(To record the petty cash fund is replenished)
2	b)	Repairs Expense	$90
		Petty Cash		$90
		(To record the payment of repairs expense by petty cash fund)
3	c)	Supplies Expense	$70
		Petty Cash		$70
		(To record the payment of supplies expense by petty cash fund)
4	d)	Equipment	$100
		Petty Cash		$100
		(To record the purchase of equipment)
5	e)	Petty Cash	$260
		Cash		$260
		(To record the petty cash fund is replenished)
6	f)	Supplies Expense	$145
		Petty Cash		$145
		(To record the payment of supplies expense by petty cash fund)
7	g)	Telephone Expenses	$50
		Petty Cash		$50
		(To record the payment of telephone expense by petty cash fund)
8	h)	No Journal Entry
9	i)	Petty Cash	$195
		Cash		$195
		(To record the petty cash fund is replenished)

2) Cash and Cash Equivalents:
Opening Balance of Cash and Cash Equivalents	$310
Add: Petty Cash Received ($260 + $195)	$455
Less:
Repairs Expense	($90)
Supplies Expense	($70)
Equipment	($100)
Supplies Expense	($145)
Telephone Expenses	($50)
Balance of Petty Cash Fund	$310
Add:
Cash	$2,000
Cash Equivalents during th period ($500 + $950)	$1,450
Total Cash and Cash Equivalents on the balance sheet	$3,760