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Bogdan [553]
3 years ago
15

Sunshine Health established a $105 petty cash fund on January 1. From January 2 through 10, payments were made from the fund, as

listed below. On January 12, the fund had only $11 remaining; a check was written to replenish the fund.
January 2 ------Paid cash for deliveries to customers—$23.
January 7 ------Paid cash for taxi fare incurred by office manager—$50.
January 10----- Paid cash for pens and other office supplies—$17

Required:

1. Prepare the journal entry, if any, required on January 1.
2. Prepare the journal entries, if any, required on January 2 through 10.
3. Prepare the journal entries, if any, required on January 12.
Business
1 answer:
kherson [118]3 years ago
6 0

Explanation:

The journal entries are shown below:

On January 1

Petty cash A/c Dr $105

     To Cash A/c $105

(Being the establishment of petty cash is recorded)

On January 2 - 10

No journal entry is required

On January 12

Delivery expenses A/c Dr $23

Office expense A/c Dr $50

Supplies  A/c Dr $17

                   To Petty cash A/c $90

(Being the replenishment of petty cash fund is recorded)

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