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    IA Problem1&2

    Uploaded by

    Miriam Ubaldo Daniel
    The document provides transactions for a petty cash fund for Tacid company from November 2020 through January 2021. Key events include: 1) Establishing a petty cash fund of $10,000 in November 2020. 2) Replenishing the fund to $20,000 in November after expenditures. 3) The fund was not replenished at year-end December 2020 and had a $1,000 shortage. 4) Expenses continued to be paid from the fund in January 2021 until it was replenished.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    IA Problem1&2

    Uploaded by

    Miriam Ubaldo Daniel
    45 views4 pages
    The document provides transactions for a petty cash fund for Tacid company from November 2020 through January 2021. Key events include: 1) Establishing a petty cash fund of $10,000 in November 2020. 2) Replenishing the fund to $20,000 in November after expenditures. 3) The fund was not replenished at year-end December 2020 and had a $1,000 shortage. 4) Expenses continued to be paid from the fund in January 2021 until it was replenished.

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    IA problem1&2

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    The document provides transactions for a petty cash fund for Tacid company from November 2020 through January 2021. Key events include: 1) Establishing a petty cash fund of $10,000 in November 2020. 2) Replenishing the fund to $20,000 in November after expenditures. 3) The fund was not replenished at year-end December 2020 and had a $1,000 shortage. 4) Expenses continued to be paid from the fund in January 2021 until it was replenished.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views4 pages

    IA Problem1&2

    Uploaded by

    Miriam Ubaldo Daniel
    The document provides transactions for a petty cash fund for Tacid company from November 2020 through January 2021. Key events include: 1) Establishing a petty cash fund of $10,000 in November 2020. 2) Replenishing the fund to $20,000 in November after expenditures. 3) The fund was not replenished at year-end December 2020 and had a $1,000 shortage. 4) Expenses continued to be paid from the fund in January 2021 until it was replenished.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    On December 1 2020 wacky company established an imprest pretty cash fund.

    December 1 established an impress pretty cash fund of 10,000 by writing a check on National Bank.

    20 replenished the petty cash fund by writing a cheque on National Bank. The fund contained:

    currency and coins 1000

    voters for selling expenses 5000

    vouchers for miscellaneous expenses 2000

    vouchers rs for equipment 2000

    December 31 the petty cash fund was not replenished. The fund contained:

    currency and coins 6000

    postdate employees check 2000

    vouchers for selling expenses 1500

    vouchers for transportation 500

    2021

    January 15 encashed the employees check. the preceed were retained in the fund:

    distribution cost 500

    administrative expenses 2000

    transportation 1000

    payment for suppliers invoice 1200

    required:

    1. prepare journal entries to record the transactions


    2. how much is the petty cash on January 31 2021 before the replenishment.
    1. Journal Entries:

    December 1, 2020: Petty Cash Fund 10,000 Cash (National Bank) 10,000 Established a
    petty cash fund of $10,000 by writing a check on National Bank.

    December 20, 2020: Various Expenses 5,000 Equipment 2,000 Transportation 2,000 Cash
    (National Bank) -9,000 Replenished the petty cash fund by writing a check on National
    Bank.

    December 31, 2020: Cash and Coins 6,000 Employees Check 2,000 Selling Expenses
    1,500 Transportation 500 Petty Cash Fund -10,000 The petty cash fund was not
    replenished.

    January 15, 2021: Cash (National Bank) 2,000 Employees Check -2,000 Encashed the
    employees check.

    January 15, 2021: Distribution Cost 500 Administrative Expenses 2,000 Transportation
    1,000 Suppliers Invoice Payment 1,200 Petty Cash Fund -4,700 Recorded expenses from
    the petty cash fund.

    2. Calculation of Petty Cash on January 31, 2021:

    Petty Cash on December 1, 2020 $10,000 Petty Cash Replenished on December 20, 2020
    $9,000 Total Petty Cash $19,000 Expenses Recorded on January 15, 2021 ($4,700) Petty
    Cash on January 31, 2021 $14,300

    Therefore, the petty cash on January 31, 2021, before replenishment is $14,300.
    Tacid company provided the following transactions:

    2020

    November 2 the entity established an imprest pretty cash fund of P10,000.

    30 an examination of the cash fund disclosed:

    currency and coin 3000

    memoranda showing expenditures for:

    postage 3000

    supplies 5000

    a check was drawn to replenish the fund and to increase its amount to P20,000.

    December 31 the fund was not replenished.

    currency and coin 11,000

    memorandum showing expenditures for

    postage 3000

    supplies 4000

    deposit for 20 cases of soft drinks 2000

    2021

    January 2 the deposit of 20 cases of soft drinks is collected.

    31 a check was drawn to replenish the fund

    currency and coins 1000

    postage stamps 500

    memoranda showing expenditures since

    November 30 2022 for:

    postage 5000

    supplies 6000

    payment of account 7000


    required:

    prepared journal entries to record the transactions

    1. Journal Entries:

    November 2, 2020: Petty Cash Fund 10,000 Cash (Bank) 10,000 Established a petty cash
    fund of P10,000.

    November 30, 2020: Postage 3,000 Supplies 5,000 Cash (Bank) -8,000 Replenished the
    petty cash fund and increased its amount to P20,000.

    December 31, 2020: Currency and Coins 11,000 Postage 3,000 Supplies 4,000 Soft Drink
    Deposit 2,000 Petty Cash Fund -20,000 The petty cash fund was not replenished.

    January 2, 2021: Cash (Bank) 2,000 Soft Drink Deposit -2,000 Collected the deposit of 20
    cases of soft drinks.

    January 31, 2021: Currency and Coins 1,000 Postage Stamps 500 Postage 5,000 Supplies
    6,000 Payment of Account 7,000 Petty Cash Fund -20,500 Replenished the petty cash
    fund.

    2. Reconciliation of Petty Cash Fund on December 31, 2020:

    Cash on Hand (currency and coins) 11,000 Expenditures: Postage 3,000 Supplies 4,000
    Soft Drink Deposit 2,000 Total Expenditures 9,000 Petty Cash Shortage 1,000

    The petty cash shortage of P1,000 should be charged to an expense account.

    Note: The given year in the "required" section says "November 30, 2022," but it is
    assumed to be a typo and treated as "November 30, 2021."

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