90.2K

Verified Solution

Link Copied!

Please help me complete all four journal entries

Palmona Company establishes a $200 petty cash fund on January 1. On January 8, the fund shows $97 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $15; delivery expenses, $17; and miscellaneous expenses, $30. Palmona uses the perpetual system in accounting for merchandise inventory.

1. Prepare the entry to establish the fund on January 1.
2. Prepare the entry to reimburse the fund on January 8 under two separate situations:
3. To reimburse the fund.
4. To reimburse the fund and increase it to $250. Hint: Make two entries.

Palmona Company establishes a $200 petty cash fund on January 1 . On January 8 , the fund shows $97 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $15; delivery expenses, $17; and miscellaneous expenses, $30. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare the entry to establish the fund on January 1. 2. Prepare the entry to reimburse the fund on January 8 under two separate situations: a. To reimburse the fund. b. To reimburse the fund and increase it to $250. Hint. Make two entries. Journal entry worksheet 4 Record the journal entry to establish the petty cash fund. Note: Enter debits before credits. 1 Record the journal entry to establish the petty cash fund. 2 Record the reimbursement of the petty cash fund. 3 Record the reimbursement of the petty cash fund. 4 Record the increase of the petty cash fund. Note : O= journal entry has been entered

Answer & Explanation Solved by verified expert

See Answer