Business, 14.07.2020 02:01, shelovejaylocs

Palmona Co. establishes a $250 petty cash fund on January 1. On January 8, the fund shows $145 in cash along with receipts for the following expenditures: postage, $43; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $32. Palmona uses the perpetual system in accounting for merchandise inventory. 1. Prepare journal entry to (1) establish the fund on January 1.
2. Prepare journal entry to re-imburse it on January 8.
3. Prepare journal entries to both re-imburse the fund and increase it to $300 on January 8, assuming no entry in part 2.

Answers: 1

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answered: aliviafrancois2000

Please see answer in explanatory column

Explanation:

1) Journal entry to establish the fund on January 1st.

Account Debit Credit

Petty Cash $250

Cash $250

2) journal entry to record re-imbursement on January 8.

Account Debit Credit

Postage expense $43

Merchandised inventory $14

Delivery Expense $16

miscellaneous expenses, $32

Cash $105

3) journal entries to record reimbursement of the fund and increment to $300 on January 8

Account Debit Credit

Petty Cash $150

Cash $150

Petty cash increasing to $300, therefore the increased amount

$300- $250= $150

answered: Guest

The answer should be b.

answered: Guest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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Palmona Co. establishes a $250 petty cash fund on January 1. On January 8, the fund shows $145 in ca...