Ex. 195
The petty cash fund of €200 for Vernon Company appeared as follows on December 31, 2014:
Cash€94.60
Petty cash vouchers
Supplies€19.40
Postage40.00
Balloons for a special occasion18.00
Meals25.00
Instructions
1.Briefly describe when the petty cash fund should be replenished. Because there is cash on hand, is there a need to replenish the fund at year end on December 31? Explain.
2.Prepare in general journal form the entry to replenish the fund.
3.On December 31, the office manager gives instructions to increase the petty cash fund by €100. Make the appropriate journal entry.
Ex. 196
Prepare the entry to replenish the $200 petty cash fund of Kruger Company, assuming the fund has receipts for: freight-out $60, postage $105, and miscellaneous expense $20. The fund contains $8 in cash.
Ex. 197
On October 1, 2014, Herman Company establishes an imprest petty cash fund by issuing a check for $200 to Jill Gray, the custodian of the petty cash fund. On October 31, 2014, Jill Gray submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $47 cash in the fund:
Freight-Out$27
Supplies Expense35
Entertainment of Clients60
Postage Expense28
Instructions
Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31.