Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $83 in cas the following expenditures: postage, $38; transportation-in, $15; delivery expenses, $17; and miscellaneous ex 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 $230. Hint. Make two entries.
Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $83 in cas the following expenditures: postage, $38; transportation-in, $15; delivery expenses, $17; and miscellaneous ex 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 $230. Hint. Make two entries.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1PA: On September 1, French company has decided to initiate a petty cash fund in the amount of $800....
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