Purchase Solution

Accounting for Petty Cash Transactions

Not what you're looking for?

Ask Custom Question

James Hughes Company established a petty cash fund on May 1, cashing a check for $119.84. The company reimbursed the fund on June 1 and July 1 with the following results.

June 1: Cash in fund $3.65. Receipts: delivery expense $34.29; postage expense $39.27; and miscellaneous expense $25.34.

July 1: Cash in fund $3.34. Receipts: delivery expense $21.45; entertainment expense $63.44; and miscellaneous expense $31.61.

On July 10, James Hughes increased the fund from $119.84 to 197.03.

Instructions

Prepare journal entries for James Hughes Company for May 1, June 1, July 1, and July 10. (For multiple debit/credit entries, list amounts from largest to smallest.)

Purchase this Solution
Solution Summary

This solution illustrates the entries made to create, replenish (i.e., reimburse), and increase a petty cash fund.

Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Motivation

This tests some key elements of major motivation theories.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

View More Free Quizzes
Related BrainMass Solutions

  • This addresses petty cash transactions for Rockin' Gyrations

    476916 Accounting for petty cash transactions Accounting for petty cash transactions Suppose that on June 1, Rockin' Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of $500.

  • Petty Cash Fund and Bank Reconciliation

    cash fund transactions Winningham Company maintains a petty cash fund for small expenditures.

  • Petty Cash Journal Entry

    On September 10, the petty cash fund was replenished when there was $16 remaining and there were petty cash receipts for: office supplies, $27; transportation-in on inventory purchased, $32; and postage, $22.

  • Petty Cash

    163674 Mora Company maintains a petty cash fund for small expenditures. E7-16 Mora Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.

  • Accounting problems

    247532 Accounting Problem Problem 1 Presented below are various receivable transactions entered into by Brewer Tool Company.

  • Internal Control and Bank Reconciliations

    Only Jeff should have access to the petty cash fund since he is the custodian. The company should implement a policy of not allowing petty cash transactions over the lunch hour.

  • Recording Petty Cash Transactions

    293502 Recording Petty Cash Transactions On July 1, Acton Company established an Imprest (petty cash) fund in the amount of $400.00 in cash from a check drawn for the purpose of establishing the fund.

  • Changing an accounting system, internal controls, purchases

    A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins. The journal entry to record the replenishment of the fund would include a Credit to Petty Cash for $96.50. Credit to Cash for $89.

  • Reporting issues for cash and cash equilvalents, acocunts receivable, factoring

    349671 Reporting issues for cash and cash equivalents Accounting Cash Flows for Intermediate Accounting 11.

View More Related Solutions