50.1K

Verified Solution

Link Copied!

Question 1 [20 points]

Northstar Corp. completed the following petty cash transactions during December, 2014.

Question 1 (20 points] Northstar Corp. completed the following petty cash transactions during December, 2014. December 1: Drew an $800.00 cheque, cashed it, and gave the proceeds and the petty cash box to George Hemphill, the petty cashier. December 2: Purchased office stationery for $142.35. December 5 : Reimbursed the manager for business auto, $131.30. December 7: Paid $136.55 for an advertisement in the newspaper. December 8: Reimbursed the manager for business auto, $123.25. December 11 : Paid $130.80 for minor computer repairs. December 31 : George Hemphill sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $140.50 in cash in the fund. In addition, the size of the petty cash fund was increased to $825.00. a) Enter the journal entry to establish the petty cash fund. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). General Journal Account/Explanation Page Gj1 F Debit Credit Date + - b) Enter the journal entry to to record the reimbursement and the increase/decrease of the fund. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). General Journal Account/Explanation Page Gj1 Debit Credit Date F

Answer & Explanation Solved by verified expert

See Answer