On January 2, 2014, Viva Stores decided to set up a petty cash fund. The treasurer established the fund by writing and cashing a $250 check and placing the coin and currency in a locked petty cash drawer. Conrad Boswell was designated as the custodian for the fund. During January, the following receipts were given to Boswell in exchange for cash from the fund:
A count of the cash in the drawer on January 31 revealed a balance of $53.25. The treasurer wrote and cashed a check on the same day to restore the fund to its original balance of $250.
REQUIRED:
Identify and analyze the effects of the transactions that Viva should record for January 2 and January 31. Assume that all stamps and office supplies were used during the month.
Jan 2, 2014 To record establishment of petty cash fund.

Question

On January 2, 2014, Viva Stores decided to set up a petty cash fund. The treasurer established the fund by writing and cashing a $250 check and placing the coin and currency in a locked petty cash drawer. Conrad Boswell was designated as the custodian for the fund. During January, the following receipts were given to Boswell in exchange for cash from the fund:
  A count of the cash in the drawer on January 31 revealed a balance of $53.25. The treasurer wrote and cashed a check on the same day to restore the fund to its original balance of $250.
REQUIRED:
Identify and analyze the effects of the transactions that Viva should record for January 2 and January 31. Assume that all stamps and office supplies were used during the month.
Jan 2, 2014 To record establishment of petty cash fund.

Quizplus · Accepted Answer

The Answer of On January 2, 2014, Viva Stores decided to set up a petty cash fund. The treasurer established the fund by writing and cashing a $250 check and placing the coin and currency in a locked petty cash drawer. Conrad Boswell was designated as the custodian for the fund. During January, the following receipts were given to Boswell in exchange for cash from the fund:
  A count of the cash in the drawer on January 31 revealed a balance of $53.25. The treasurer wrote and cashed a check on the same day to restore the fund to its original balance of $250.
REQUIRED:
Identify and analyze the effects of the transactions that Viva should record for January 2 and January 31. Assume that all stamps and office supplies were used during the month.
Jan 2, 2014 To record establishment of petty cash fund.

On January 2, 2014, Viva Stores Decided to Set Up