Blue Spruce Corp. established a petty cash fund early in 2023 to increase the efficiency of accounting for small cash transactions and to improve control over many of the small expenditures it makes. The company decided to set up the imprest fund at $490, and a cheque was issued for this amount and given to the petty cash custodian. During January, the petty cash custodian made the following disbursements and placed a receipt for each in the cash box provided. Tim Hortons coffee order for a management meeting $29.36 Supplies purchased 48.80 Freight charge to ship goods to a customer 27.00 Travel advance to employee 152.00 Card, wrapping paper for gift for employee in hospital 19.10 The petty cash was replenished on January 22 when the amount of cash in the fund was $211.39. In June, after six months' experience with the fund, management decided to increase the imprest fund to $610. (a) Prepare the journal entries to establish the petty cash fund, to reimburse it on January 22, and to increase the fund in June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 52.75. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Blue Spruce Corp. established a petty cash fund early in 2023 to increase the efficiency of accounting for small cash transactions and to improve control over many of the small expenditures it makes. The company decided to set up the imprest fund at $490, and a cheque was issued for this amount and given to the petty cash custodian. During January, the petty cash custodian made the following disbursements and placed a receipt for each in the cash box provided. Tim Hortons coffee order for a management meeting $29.36 Supplies purchased 48.80 Freight charge to ship goods to a customer 27.00 Travel advance to employee 152.00 Card, wrapping paper for gift for employee in hospital 19.10 The petty cash was replenished on January 22 when the amount of cash in the fund was $211.39. In June, after six months' experience with the fund, management decided to increase the imprest fund to $610. (a) Prepare the journal entries to establish the petty cash fund, to reimburse it on January 22, and to increase the fund in June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 52.75. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blue Spruce Corp. established a petty cash fund early in 2023 to increase the efficiency of accounting for small cash transactions and
to improve control over many of the small expenditures it makes. The company decided to set up the imprest fund at $490, and a
cheque was issued for this amount and given to the petty cash custodian.
During January, the petty cash custodian made the following disbursements and placed a receipt for each in the cash box provided.
Tim Hortons coffee order for a management meeting
$29.36
Supplies purchased
48.80
Freight charge to ship goods to a customer
27.00
Travel advance to employee
152.00
Card, wrapping paper for gift for employee in hospital
19.10
The petty cash was replenished on January 22 when the amount of cash in the fund was $211.39. In June, after six months' experience
with the fund, management decided to increase the imprest fund to $610.
(a)
Prepare the journal entries to establish the petty cash fund, to reimburse it on January 22, and to increase the fund in June. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 52.75. Record journal entries in the order presented in the
problem. List all debit entries before credit entries.)
Date
>
Account Titles and Explanation
Debit
Credit
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