Tuesday, 15 October 2013

Shelton Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier. 5 Purchased bond paper for the copier for $16.55 that is immediately used. 9 Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Shelton uses the perpetual system to account for merchandise inventory. 12 Paid $7.55 postage to express mail a contract to a client. 14 Reimbursed Alli Buck, the manager, $73 for business mileage on her car. 20 Purchased stationery for $68.87 that is immediately used. 23 Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination. 25 Paid $12.00 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. 27 Paid $58 for postage expenses. 28 The fund had $25.52 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures. 28 The petty cash fund amount is increased by $140 to a total of $490.

Shelton Gallery had the following petty cash transactions in February of the current year.
Feb. 2  
Wrote a $350 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier.
  5  
Purchased bond paper for the copier for $16.55 that is immediately used.
  9  
Paid $34.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Shelton uses the perpetual system to account for merchandise inventory.
  12  
Paid $7.55 postage to express mail a contract to a client.
  14  
Reimbursed Alli Buck, the manager, $73 for business mileage on her car.
  20  
Purchased stationery for $68.87 that is immediately used.
  23  
Paid a courier $17 to deliver merchandise sold to a customer, terms FOB destination.
  25  
Paid $12.00 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
  27   Paid $58 for postage expenses.
  28  
The fund had $25.52 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
  28   The petty cash fund amount is increased by $140 to a total of $490.

Prepare the journal entry to establish the petty cash fund.

Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenditures in each category. (Round your answers to 2 decimal places.)
 

Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount. (Round your answers to 2 decimal places.)
 

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