Question

Problem 8-03A a-b (Video) Sunland Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug. 15 Repleniehed the each fund $47.10, postage expense $43.50, and miscellaneous expense $11.40. 16 Increased the amount of the petty cash fund to $305 by writing a check for $105.00. Established the petty cash fund by writing a check payable to the petty cash custodian for $200. .... check for $196.70. On this date. the fund consisted of $3.30 in cash and these petty cash receipts: freight-out $93.00, entertainment expense 31 Replenished the petty cash fund by writing a check for $288.10. On this date, the fund consisted of $16.90 in cash and these petty cash receipts: postage expense $139.80, entertainment expense $92.60, and freight-out $54.60. Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.) Debit Credit Date Account Titles and Explanation

Answer 1

Answer:

1) Journalize the petty cash transactions.
Date	Account Title and explanation	Debit($)	Credit($)
01-Aug	Petty Cash	200.00
	Cash		200.00
	(To establish petty cash fund)
15-Aug	Freight Out	93.00
	Entertainment Expenses	47.10
	Postage Expenses	43.50
	Miscellaneous Expense	11.40
	Cash Over and Short	1.70
	Cash		196.70
	(To record cash expense)
16-Aug	Petty Cash	105.00
	Cash		105.00
	(To replenish petty cash)
31-Aug	Postage Expense	139.80
	Entertainment Expense	92.60
	Freight Out	54.60
	Cash Over and Short	1.10
	Cash		288.10
	(To record cash expense)

2) Post to the Petty Cash account.
Petty Cash
01-Aug	Cash	$200
16-Aug	Cash	$105
31-Aug	Balance	$305