1- Record the necessary petty cash transactions in the general journal. The Real S. Tate company…
1- Record the necessary petty cash transactions in the general journal. The Real S. Tate company uses the following expense accounts: Office Supplies Expense, Entertainment Expense, Maintenance Expense, Delivery Expense and Postage Expense.
2- Prepare a summary of the petty cash disbursements.
09/01 Issued a cheque in the name of Mark Tremblay to set up a petty cash fund: $300.
09/01 Sold merchandise on credit for $10,000 in exchange for a 60-day note receivable bearing 4% interest.
09/03 Wrote off Mr. Smith’s account in the amount of $800 using the allowance method.
09/04 Purchased office supplies in the amount of $10.
09/04 Exchanged Mrs. White’s $3000 credit account for a 60-day note receivable bearing 5% interest.
09/05 Collected a $2000, 60-day note receivable bearing 3% interest, which was issued in October, from Mr. Jones.
09/06 Withdrawal from petty cash by the owner to buy coffee and doughnuts for the staff meeting: $80.
09/06 Purchased stamps: $15.
09/12 Purchased office supplies in the amount of $20.
09/16 Paid Livraison Cyr enr. for merchandise delivered to a client: $30.
09/17 Paid to have the office windows cleaned: $30.
09/20 Paid Purolator $80 to deliver a package to a client.
09/23 Purchased stamps: 30$
09/29 Realizing that there is only $8 left in the petty cash fund, Mark Tremblay sorts the receipts and prepares a petty cash summary. The accounting department issues a cheque to replenish the fund. The petty cash fund is increased by $50.
09/30 Recorded the accrued interest on the notes receivable