Answer:
Jeremiah Restoration Company
Journal Entries:
Jan. 1:
Debit Petty Cash Fund $900
Credit Cash Account $900
To record the establishment of a petty cash fund.
Jan. 12:
Debit Cash Account $6,180
Credit Sales $6,148
Credit Suspense $32
To record cash sales and excess cash received.
Jan. 31:
Debit Petty Cash Fund $825
Credit Cash Account $825
To record the replenishment of the petty cash fund.
Jan. 3:
Debit Store Supplies $470
Credit Petty Cash Fund $470
To record payment for store supplies.
Jan. 7:
Debit Delivery Expenses $55
Credit Petty Cash Fund $55
To record payment for merchandise delivery.
Jan. 9:
Debit Office Supplies $30
Credit Petty Cash Fund $30
To record payment for office supplies.
Jan. 13:
Debit Office Supplies $11
Credit Petty Cash Fund $11
To record payment for office supplies.
Jan. 19:
Debit Office Supplies $55
Credit Petty Cash Fund $55
To record payment for postage stamps.
Jan. 21:
Debit Miscellaneous Administrative Expense $60
Credit Petty Cash Fund $60
To record the payment for repair of office file cabinet lock.
Jan. 22:
Debit Miscellaneous Administrative Expense $30
Credit Petty Cash Fund $30
To record payment for postage due on special delivery letter.
Jan. 24:
Debit Delivery Expense $85
Credit Petty Cash Fund $85
To record payment for express charges on merchandise sold.
Jan. 30:
Debit Office Supplies $14
Credit Petty Cash Fund $85
To record payment for office supplies.
Jan. 31:
Debit Cash Account $4,536
Debit Suspense Account $14
Credit Sales $4,550
To record collections from cash sales.
Debit Cash Account $200
Credit Petty Cash Fund $200
To decrease the petty cash fund.
Explanation:
Journal entries are generally the first recording of business transactions. They are used to debit and credit the affected accounts for each transaction.
