T. L. Jones Trucking Services establishes a petty cash fund on April 3 for $450. By the end of April, the fund has a cash balance of $383. The company has also issued a credit card and authorized its office manager to make purchases. Expenditures for the month include the following items: Utilities (credit card) $119
Entertainment (petty cash ) 28
Stamps (petty cash) 43
Plumbing repair services (credit card) 214

Required:
a. Record the establishment of the petty cash fund on April 3.
b. Record credit card expenditures during the month. The credit card balance is paid in full on April 30.
c. Record petty cash expenditures during the month.

A. 04/03

Dr Petty Cash $450

Cr Cash $450

B. 04/30

Dr Utilities Expense $119

Dr Maintenance and Rep $214

Cr Cash $333

C. 04/30

Dr Entertainment Expense $28

Dr Stamp expense $43

Cr Cash $71

Explanation:

Preparation of the journal entries

A. 04/03

Dr Petty Cash. $450

Cr Cash $450

(Being to record the establishment of the petty cash fund on April 3)

B. 04/30

Dr Utilities Expense $119

Dr Maintenance and Rep $214

Cr Cash $333

($114+$214)

(Being to record credit card expenditures during the month)

C. 04/30

Dr Entertainment Expense $28

Dr Stamp expense $43

Cr Cash $71

(28+43)

(Being to Record petty cash expenditures during the month)

answer; /// that is so (false);

the correct answer is - no.

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