Halle's Berry Farm establishes a $350 petty cash fund on September 4 to pay for minor cash expenditures. The fund is replenished at the end of each month. At the end of September, the fund contains $271 in cash. The company has also issued a credit card and authorized its office manager to make purchases. Expenditures for the month include the following items: Entertainment for office party (petty cash) $ 79 Lawn maintenance (credit card) 109 Postage (credit card) 64 Fuel for deliveries (credit card) 74 Required: Record the establishment of the petty cash fund on September 4. Record credit card expenditures during the month. The credit card balance is not yet paid. Record petty cash expenditures during the month.

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Business

Aniyah Griffin

29 November, 17:04

Halle's Berry Farm establishes a $350 petty cash fund on September 4 to pay for minor cash expenditures. The fund is replenished at the end of each month. At the end of September, the fund contains $271 in cash. The company has also issued a credit card and authorized its office manager to make purchases. Expenditures for the month include the following items: Entertainment for office party (petty cash) $ 79 Lawn maintenance (credit card) 109 Postage (credit card) 64 Fuel for deliveries (credit card) 74 Required: Record the establishment of the petty cash fund on September 4. Record credit card expenditures during the month. The credit card balance is not yet paid. Record petty cash expenditures during the month.

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Trevor Farmer · Answer 1

The journal entries are as follows

On September 4

Petty cash A/c Dr $350

To Cash A/c $350

(Being the establishment of petty cash is recorded)

On September 30

Entertainment expenses A/c Dr $79

Maintenance expenses A/c Dr $109

Postage expense A/c Dr $64

Delivery expense A/c Dr $74

To Petty cash A/c $326

(Being the expenses are recorded)

On September 30

Petty cash Ac / Dr $326

To Cash A/c $326

(Being the replenishment of fund is recorded)