Question

Problem 7-03A a-b 

Kael Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. 

Aug. 1 Established the petty cash fund by writing a check payable to the petty cash custodian for $200.00. 

15 Replenished the petty cash fund by writing a check for $175.00. On this date, the fund consisted of $25 in cash and these petty cash receipts: freight-out $74.40, entertainment expense $36.00, postage expense $33.70, and miscellaneous expense $27.50. 

16 Increased the amount of the petty cash fund to $400.00 by writing a check for $200.00. 

31 Replenished the petty cash fund by writing a check for $283.00. On this date, the fund consisted of $117 in cash and these petty cash receipts: postage expense $145.00, entertainment expense $90.60, and freight-out $46.40.

Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit

Answer 1

Answer
Date	Particular	Amount(DR)	Amount(CR)
01-Aug	Petty Cash	$                   200
	Cash		$                  200
	(To Record Establishment of fund )
15-Aug	Freight Out	$                     74
	Postage Expense	$                     34
	Entertainment Expense	$                     36
	Miscellaneous Expense	$                     28
	Cash Over and Short	$                       3
	Cash (200-25)		$                  175
	(TO Record Expenses)
16-Aug	Petty Cash	$                   200
	Cash		$                  200
	(TO increase cash in fund )
31-Aug	Postage Expense	$                   145
	Entertainment Expense	$                     91
	Freight Out	$                     46
	Cash Over and Short	$                       1
	Cash (400-117)		$                  283
	(TO Record Expenses)

Petty Cash Fund
Date	Debit
01-Aug	$                       200
16-Aug	$                       200
31-Aug	$                       400
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