Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 64.2C
To determine
Concept Introduction:
Internal Control:
Internal controls are policies and procedures implemented by an organization to attain operational goals and maintain the integrity of accounting. Internal
To Indicate:
The internal control practices to be adopted for purchase and payables.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
View Policies
Current Attempt in Progress
Sheridan Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.
Aug. 1
(a)
15
16
31
Established the petty cash fund by writing a check payable to the petty cash custodian for $225.
Replenished the petty cash fund by writing a check for $220.30. On this date, the fund consisted of $4.70 in cash and
these petty cash receipts: freight-out $96, entertainment expense $48.70, postage expense $41.70, and miscellaneous
expense $32.50.
Increased the amount of the petty cash fund to $325 by writing a check for $100.00.
Replenished the petty cash fund by writing a check for $309.30. On this date, the fund consisted of $15.70 in cash and
these petty cash receipts: postage expense $139.80, entertainment expense $96.40, and freight-out $71.80.
Journalize the petty cash transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when
amount is…
Address
3695 w 6th st Craig
Kiona Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund
occurred in May (the last month of the company's fiscal year).
May 1 Prepared a company check for $400 to establish the petty cash fund.
May
15
Prepared a
company check to replenish the fund for the following expenditures made since May 1.
May 15
Paid $124.80 for janitorial expenses.
May
15
Paid $101.88 for miscellaneous expenses
May 15
Paid postage expenses of $69.60.
May
15
d.
Paid $91.44 to Facebook for advertising expense.
Mav
15
Counted $30.68 remaining in the petty cashbox.
May 16 Prepared a company check for $200 to increase the fund to $600.
May 31 The petty cashier
reports that $401.19 cash remains in the fund. A company check is drawn to replenish the fund for the
following expenditures made since May 15.
May 31 f. Paid postage expenses of $64.48.
May 31 g. Reimbursed the office manager for mileage expense, $51.33.
May…
Problem 6-2A (Algo) Establishing, reimbursing, and adjusting petty cash LO P2
Kiona Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund
occurred in May (the last month of the company's fiscal year).
May 1 Prepared a company check for $300 to establish the petty cash fund.
May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
May 15 a. Paid $93.60 for janitorial expenses.
May 15 b. Paid $76.41 for miscellaneous expenses.
May 15 c. Paid postage expenses of $52.20.
May 15 d. Paid $68.58 to Facebook for advertising expense.
May 15 e. Counted $23.01 remaining in the petty cashbox.
May 16 Prepared a company check for $200 to increase the fund to $500.
May 31 The petty cashier reports that $339.32 cash remains in the fund. A company check is drawn to replenish the fund for the
following expenditures made since May 15.
May 31 f. Paid postage expenses of $53.73.
May 31 g.…
Chapter 4 Solutions
Cornerstones of Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - Prob. 22DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQCh. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 14MCQCh. 4 - Prob. 15MCQCh. 4 - Prob. 16CECh. 4 - Prob. 17CECh. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CECh. 4 - Prob. 20CECh. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CECh. 4 - Prob. 24CECh. 4 - Prob. 25BECh. 4 - Prob. 26BECh. 4 - Prob. 27BECh. 4 - Prob. 28BECh. 4 - Prob. 29BECh. 4 - Prob. 30BECh. 4 - Prob. 31BECh. 4 - Prob. 32BECh. 4 - Prob. 33BECh. 4 - Prob. 34BECh. 4 - Prob. 35BECh. 4 - Prob. 36BECh. 4 - Prob. 37BECh. 4 - Prob. 38BECh. 4 - Prob. 39ECh. 4 - Prob. 40ECh. 4 - Prob. 41ECh. 4 - Prob. 42ECh. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44ECh. 4 - Prob. 45ECh. 4 - Prob. 46ECh. 4 - Prob. 47ECh. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49ECh. 4 - Prob. 50ECh. 4 - Prob. 51ECh. 4 - Prob. 52ECh. 4 - Prob. 53ECh. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSACh. 4 - Prob. 56APSACh. 4 - Prob. 57APSACh. 4 - Prob. 58APSACh. 4 - Prob. 59APSACh. 4 - Prob. 60APSACh. 4 - Prob. 61APSACh. 4 - Prob. 55BPSBCh. 4 - Prob. 56BPSBCh. 4 - Prob. 57BPSBCh. 4 - Prob. 58BPSBCh. 4 - Prob. 59BPSBCh. 4 - Prob. 60BPSBCh. 4 - Prob. 61BPSBCh. 4 - Prob. 62.1CCh. 4 - Prob. 62.2CCh. 4 - Prob. 62.3CCh. 4 - Prob. 62.4CCh. 4 - Prob. 63.1CCh. 4 - Prob. 63.2CCh. 4 - Prob. 64.1CCh. 4 - Prob. 64.2CCh. 4 - Prob. 65CCh. 4 - Prob. 66.1CCh. 4 - Prob. 66.2CCh. 4 - Prob. 67.1CCh. 4 - Prob. 67.2CCh. 4 - Prob. 68.1CCh. 4 - Prob. 68.2CCh. 4 - Prob. 68.3CCh. 4 - Prob. 68.4CCh. 4 - Prob. 69.1CCh. 4 - Prob. 69.2CCh. 4 - Prob. 69.3CCh. 4 - Prob. 69.4CCh. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2CCh. 4 - Prob. 70.3CCh. 4 - Prob. 70.4C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Recording Petty Cash Transactions Budding Products had a balance of $400 in cash in its petty cash fund at the beginning of November. The following transactions took place in November: On November 1, the custodian paid $43 out of petty cash for new pens with Budding’s newly designed logo prominently displayed. This is considered supplies expense. On November 7, the custodian paid $84 out of petty cash for minor repairs to its equipment. This is a maintenance expense. On November 9, the custodian paid $33 out of petty cash for transportation-in. On November 15, the custodian paid $46 out of petty cash to have documents delivered to the accounting firm preparing the company’s corporate tax return. This is considered an other expense. On November 22, the custodian paid $125 out of petty cash to reimburse the Chief Financial Officer for costs he had incurred in traveling to the airport for an important international business conference. This is a travel expense. On November 28, the…arrow_forward28 Lewis Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May. May 1 Prepared a company check for $550 to establish the petty cash fund. May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. a. Paid $190 for janitorial services. b. Paid $142 for miscellaneous expenses. c. Paid postage expenses of $95. d. Paid $47 to Facebook for advertising expense. e. Counted $87 remaining in the petty cash box. May 16 Prepared a company check for $250 to increase the fund to $800. May 31 The petty cashier reports that $320 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $280. g. Reimbursed the office manager for business mileage, $140. h. Paid $46 to deliver merchandise to a customer, terms FOB destination. May 31 The company decides that the May 16 increase in the fund…arrow_forwardBrief Exercise 4-33 (Algorithmic)Cash Over and Short Milner Department Store has one cash register on which it performs daily cash counts. Recently, the cash count indicated that there was $5,887.29 in the register after deducting and removing the opening change amount of $75.00. However, the cash register tape reported sales in the amount of $5,844.73. Milner deposited its cash collected in its bank account. Required: Prepare a journal entry to record these cash collections. For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to two decimal places, if necessary.arrow_forward
- TB EX Qu. 4-188 (Static) A company establishes... A company establishes a $300 petty cash fund on August 3 to pay for minor cash expenditures. The fund is replenished at the end of each month. In addition, the company has issued credit cards for more substantial employee purchases. These credit cards are issued to authorized managers. At the end of August, the following employee purchases have been made: Petty Cash Fund Delivery fees Plumbing maintenance Postage Flowers for the office View transaction list 1 Journal entry worksheet $ 100 70 40 50 $ 260 2 Required: Record the establishment of the petty cash fund on August 3, employee expenditures related to the petty cash fund on August 31, and employee expenditures related credit cards on August 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 3 Credit Cards Equipment Advertising Supplies $1,400 750 360 $2,510arrow_forwardL Recording Petty Cash Account Transactions During March, Drapeau Company engaged in the following transactions involving its petty cash fund: a. On March 1, Drapeau Company established the petty cash fund by issuing a cheque for $1,500 to the fund custodian. b. On March 4, the custodian paid $103 out of petty cash for freight charges on new equipment. This amount is properly classified as equipment. c. On March 12, the custodian paid $140 out of petty cash for supplies. Drapeau expenses supplies purchases as supplies expense. d. On March 22, the custodian paid $28 out of petty cash for express mail services for reports sent to Environment Canada. This is considered a miscellaneous expense. e. On March 25, the custodian filed a claim for reimbursement of petty cash expenditures during the month totalling $271. f. On March 31, Drapeau Issued a cheque for $271 to the custodian, replenishing the fund for expenditures during the month. Required: Prepare the journal entries required to…arrow_forwardProblem 1: Capital Irrigation has only a general journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash transactions were noted by the petty cashier as occurring during April 2017: Apr. 1 Received a company cheque for $300 to establish the petty cash fund. 15 Received a company cheque to replenish the fund for the following expenditures made since april 1 and to increase the fund to $400. a. Paid $82 for janitorial service. b. Purchased office supplies for $78.15. c. Purchased postage stamps for $25.00. d. Paid $92.50 to the County Crier for an advertisement in the newspaper. e. Discovered that $24.35 remained in the petty cash box. 30 The petty cashier noted that $244.95 remained in the fund and decided that the April 15 increase in the fund was too large.…arrow_forward
- Instructions The following petty cash transactions were noted by the petty cashier as occurring during April 2005: April 1- Received a company cheque for $250 to establish the petty cash fund. April 15- Received a company cheque to replenish the fund for the following expenditures made since April 1 and to increase the fund to $450 a. Paid $78 for janitorial service. b. Purchased office supplies for $63.68 c. Purchased postage stamps for $43.50 d. Paid $57.15 to the County Crier for an advertisement in the newspaper. e. Discovered that $11.15 remained in the petty cash box. April 30- The petty cashier noted that $333.39 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was drawn to replenish the fund for the following expenditures made since April 15 to reduce the fund to $400. f. Purchased office supplies for $48.36 g. Reimbursed office manager for business auto, $28.50 h. Paid $39.75 courier charges to deliver…arrow_forwardProblem 1 (Petty Cash) George Corp sets up a petty cash fund to pay for relatively small amounts of expenses. George Corp., where the petty cash account amount remains in its original amount and the transaction is determined for petty cash balance under $ 1,000. The following are available data for the month of July 2020 On July 4, the company will set a petty cash fund of $ 1,000 Summary of expenses, petty cash is $ 250 on file by the company. on July 14 are as follows: Payroll Check S83 Dividends $ 49 Commission S64 Travel and Entertainment Expense $ 23 Advertising $ 31 On July 25, George purchased, the equipment for S1800 George Corp decided to increase the cash amount to the petty cash fund by $ 500 on July 31 Requested: Make a number of entries on petty cash transactions using the impress and fluctuating method during July. Problem 2 (Receivables) PT CAHAYA's Receivables Balance as of December 31, 2019 was IDR 1,350,000,000, allowance for uncollectible accounts was IDR…arrow_forward18 MNC LLC established Petty cash fund to maintain its small expenses with OMR 100. At the end of the month there is OMR 10 cash and currency in the cash box along with the receipts equal to OMR92. The receipts consist of delivery charges OMR 50, OMR 20 for postage, and office supplies of OMR 22. The petty cash custodian submits the receipts to the accountant and the accountant replenished the funds. Identify the journal entry recorded by the accountant while issuing the check to the custodian. a. Dr Delivery charges OMR 50, Dr Postage charges OMR 20 Dr Office supply charges and Cr Cash A/C OMR92 b. Dr Cash short expenses OMR2, Dr Cash A/C OMR 90 and Cr Delivery charges OMR 50, Cr Postage charges OMR 20, Cr Office supply expenses OMR22 c. Dr Delivery charges OMR 50, Dr Postage charges OMR 20, Dr Office supply expenses OMR22, Dr Cash short expenses OMR2 and Cash A/C OMR 94 d. Dr Delivery charges OMR 50, Dr Postage charges OMR 20, Dr Office supply expenses OMR22 and Cr Over cash…arrow_forward
- Problem 8 JAJA Company, provided the following information pertaining to its petty cash fund during the year: The company established a P40,000 petty cash fund on November 12, 2021. On November 30, 2021, the PCF was replenished, and the accountant recorded the replenishment as follows: Various expenses 14,000Loss on petty cash shortage 1,000Cash in bank 15,000 At year-end the petty cash fund was not replenished, and the random cash count at December 31, 2021 revealed the following: Bills and coins 6,000 Paid expense vouchers Transportation 2,000Fuel and gasoline 3,000Office supplies 1,500IOUs 10,000 Unpaid expense vouchers Representation fees 9,000Payment for parking 4,500 Postdated checks of the following: Company officers 10,000Petty cash custodian 5,000Customers 12,000 How much is the (net shortage)/net overage during the year ended December 31, 2021? (If net shortage, use the "-" symbol, if net overage positive sign)arrow_forwardRecall on February 1, Derrick Company established a $200 petty cash fund. On February 15, when the fund balance reached $7, the petty cash custodian prepared a petty cash report that summarized receipts for postage ($140) and printing ($54). Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus. View transaction list Journal entry worksheet 1 Recall on February 1, Derrick Company established a $200 petty cash fund. On February 15, when the fund balance reached $7, the petty cash custodian prepared a petty cash report that summarized receipts for postage ($140) and printing ($54). Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down monur Note: Enter debits before credits. Date Feb. 15 General Journal Debit Creditarrow_forwardProblem 6 The petty cash fund of Padipan Company, which has an imprest balance of P60,000, on December 31, 2021 is composed of the following: P 9,000 Coins and currencies Petty cash vouchers: Gasoline payments Supplies Cash advances to employees Employee's check returned by bank marked NSF Check drawn by Jackson payable to the order of the petty cash custodian representing her salary A sheet of paper with names of employees together with the contribution for a birthday gift of a co-employee in the amount of Personal check drawn by the petty cash custodian 6,000 7,000 8,000 15,000 9,000 5,000 1,000 6. What is the correct amount of petty cash on December 31, 2021?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning