Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

تمرين 36

Blues Music Center had the following petty cash transactions in March of the current year.
March 5 Wrote a $250 check, cashed it, and gave the proceeds and the petty cashbox to Jen Rouse, the petty cashier.
6 Paid $12.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Blues uses the perpetual system to account for merchandise inventory.
11 Paid $10.75 delivery charges on merchandise sold to a customer, terms FOB destination.
12 Purchased file folders for $14.13 that are immediately used.
14 Reimbursed Bob Geldof, the manager, $11.65 for office supplies purchased and used.
18 Purchased printer paper for $20.54 that is immediately used.
27 Paid $45.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
28 Paid postage expenses of $18.
30 Reimbursed Geldof $56.80 for business car mileage.
31 Cash of $61.53 remained in the fund. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
31 The petty cash fund amount is increased by $50 to a total of $300.
Required
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for March 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 expenses in each category.
3. Prepare the journal entries (in dollars and cents) for part 2 to both ( a ) reimburse and ( b ) increase the fund amount.