Question

PROBLEMS: Total Whers wo 540 $108 1. On January 1, 2018 a petty cash fund is established at $600. The accountant has decided to maintain a cash float of the same amount for the next 6 months ending June 30, 2018 09 In the first week in January the following petty transactions took place and voxofers were presented: Postage $192 Office supplies $70 Delivery services Yard cleaning services $220 Balance of petty cash in hand S8 On the second week in January 2016 the following vouchers were received: 5 Delivery services $174 Yard cleaning $180 Gas for delivery vans $120 Drinking water $60 Balance of Petty cash in hand $38 009. HES Required: Show necessary journal entries to record the above transactions including the establishment of the fund. 2. Bit Coin Products had the following transactions listed below. Omit explanations. March 3 Purchased $3,200 of merchandise on credit, terms 2/10, n/60. 6 Returned $400 of the goods purchased on June 3. 7 Paid freight charges of $280 on goods purchased on June 3. 12 Paid for the goods purchased on June 3. 13 Sold goods on credit to Petty Shrew for $4,000, terms 1/10, n/30. The goods had cost $1,800, 14 Petty Shrew returned $400 of the goods for full credit. 23 Received payment from Petty Shrew in full. 25 Purchased office supplies for $1,000 on credit REQUIRED: In the books of the company record the necessary journal entries, assuming use of the periodic inventory system. 100 17, 3,14,15,

Answer 1

Journal Entries:

1)
Date	Account Titles and Explanations	Debit	Credit
Jan. 1, 2018	Petty Cash	$600
	Cash		$600
	(To record the establishment of petty cash fund)
First Week	Postage	$192
	Office supplies	$70
	Delivery services	$108
	Yard cleaning services	$220
	Miscellaneous Expenses ($600 - $192 - $70 - $108 - $220 - $8)	$2
	Petty Cash		$590
	(To record the petty cash expenses)
Second Week	Delivery Services	$174
	Yard cleaning	$180
	Gas for delivery van	$120
	Drinking water	$60
	Petty Cash		$534
	(To record the petty cash expenses)
	Petty Cash ($8 - $174 + $180 + $120 + $60 + $38)	$564
	Cash		$564
	(To record the establishment of petty cash fund)

2)
Date	Account Titles and Explanations	Debit	Credit
Mar. 3	Merchandise Inventory	$3,200
	Accounts Payable		$3,200
	(To record the purchase of merchandise on account)
Mar. 6	Accounts Payable	$400
	Merchandise Inventory		$400
	(To record the return of merchandise inventory purchased on account)
Mar. 7	Freight Charges	$280
	Cash		$280
	(To record the payment of freight charges by cash)
Mar. 12	Accounts Payable ($3,200 - $400)	$2,800
	Cash		$2,800
	(To record the payment for merchandise purchased on account)
Mar. 13	Accounts Receivable - Petty Shrew	$4,000
	Sales Revenue		$4,000
	(To record the sales revenue on account)
	Cost of Goods Sold	$1,800
	Merchandise Inventory		$1,800
	(To record the cost of goods sold)
Mar. 14	Sales Returns and Allowances	$400
	Accounts Receivable - Petty Shrew		$400
	(To record the credit sales returns)
Mar. 23	Cash	3,600
	Accounts Receivable - Petty Shrew ($4,000 - $400)		$3,600
	(To record the receipt of cash for the goods sold on account)
Mar. 25	Office Supplies	$1,000
	Accounts Payable		$1,000
	(To record the purchase of office supplies on account)