Chapter 10
Cash Controls
323
Review Exercise 3
On April 1, 2016 Clayton Company established a petty cash fund of $200.
During the month, the custodian placed the following receipts in the petty cash box.
Apr 6 Paid $40 for postage.
Apr 8 Paid $20 to FedEx for delivery of a package
Apr 10 Paid $25 for travel expenses of employees on company business.
Apr 14 Paid $8 for coffee and donuts for a client meeting.
Apr 15 Paid $7 for paper for the photocopier.
The custodian counted the fund on April 16 and found $95 in the petty cash box.
Required
a) Prepare the journal entry to record the establishment of the fund.
b) Prepare the journal entry to record the reimbursement of the fund on April 16.
See Appendix I for solutions.
a)
Journal
Page 1
Date
Account Titles and Explanation
Debit
Credit
b)
Journal
Page 1
Date
Account Titles and Explanation
Debit
Credit
