On January 1, 2014, Jonas Company established a petty cash fund of $500. By March 31, 2014, when the fund was replenished, the following petty cash vouchers had been issued: January 26, postage, $48; February 16, postage, $52; February 6, airport limousine fares, $24; January 18, office supplies, $67; March 8, postage, $38; March 4, local express delivery charges on purchases, $65. There was $209 in coins and currency left in petty cash before replenishment.
Required:
a.Prepare the journal entries to record the transactions relating to Jonas Company's petty cash fund for the first quarter of 2014.
b.On April 1, the size of the petty cash fund was decreased to $425. What journal entry (if any) is necessary to record this action?

Question

On January 1, 2014, Jonas Company established a petty cash fund of $500. By March 31, 2014, when the fund was replenished, the following petty cash vouchers had been issued: January 26, postage, $48; February 16, postage, $52; February 6, airport limousine fares, $24; January 18, office supplies, $67; March 8, postage, $38; March 4, local express delivery charges on purchases, $65. There was $209 in coins and currency left in petty cash before replenishment.
Required: 
a.Prepare the journal entries to record the transactions relating to Jonas Company's petty cash fund for the first quarter of 2014.
b.On April 1, the size of the petty cash fund was decreased to $425. What journal entry (if any) is necessary to record this action?

Quizplus · Accepted Answer

The Answer of On January 1, 2014, Jonas Company established a petty cash fund of $500. By March 31, 2014, when the fund was replenished, the following petty cash vouchers had been issued: January 26, postage, $48; February 16, postage, $52; February 6, airport limousine fares, $24; January 18, office supplies, $67; March 8, postage, $38; March 4, local express delivery charges on purchases, $65. There was $209 in coins and currency left in petty cash before replenishment.
Required: 
a.Prepare the journal entries to record the transactions relating to Jonas Company's petty cash fund for the first quarter of 2014.
b.On April 1, the size of the petty cash fund was decreased to $425. What journal entry (if any) is necessary to record this action?

On January 1, 2014, Jonas Company Established a Petty Cash