Petty Cash fund and Undeposited Collections

Lyne Reeves is the cashier of the LGlass Company. As representative of the Brad,
Pitt & Associates, CPAs, you were assigned to verify her cash on hand in the
morning of January 4, 2015. You began counting at 9:00 a.m. in the presence of
Ms. Reeves. In the course of your counting, you found currencies in paper bills
and coins together with checks, vouchers and other items, which are mentioned
below:

Bills
9 one hundreds, 25 fifties, 50 twenties, 120 tens

Coins
$5.000 - 4 rolls and 5 loose (50 pieces to a roll)
1.00 - 8 rolls and 15 loose (100 pieces to a roll)
0.25 - 2 rolls and 2 loose (500 pieces to a roll)
0.10 - 3 rolls and 40 loose (500 pieces to a roll)
0.05 - 2 rolls (400 pieces to a roll)

Checks
Maker Date Payee
Amount
Rosse Manly, Asst. Mgr. Dec. 23, 2014 LGlass Co. $600
Miss L. Reeves, Cashier Dec. 26, 2014 LGlass Co. 400

I.O.U.s
A. David, Janitor Dec. 20, 2014 $350
R. Train, Clerk Dec. 22, 2014 250
Peter Munes, Bookkeeper Dec. 24, 2014 150

Petty Cash Vouchers for Replenishment

Payee Date Account Charged
Amount
L. Cruise, Messenger Dec. 16, 2014 Advances to Employees
$100.00
Rossares & Co. Dec. 18, 2014 Supplies
145.00
Victory Lines Dec. 18, 2014 Freight-in
182.50
Bureau of Posts (stamps) Dec. 18, 2014 Supplies
300.00
A. Valle, Carpenter Dec. 20, 2014 Repairs
450.00
B. Talle Dec. 21, 2014 Miscellaneous Expense
154.00
Your investigation also disclosed the following:
1. The balance of petty cash fund per book is $9,000.
2. Cash sales on January 2, 2015 amounted to $8,650 per sales records, while
cash receipts book and deposit slip showed that only $7,650 was deposited
in the bank on January 3, 2015.
 3. The following employees’ pay envelopes have been opened and the money
removed. Each envelope was marked “unclaimed”.
N. Raw $332.50
G. Glee 247.50
Required:
1. Prepare working papers showing your cash count.
2. Prepare necessary adjusting journal entries without explanation as of
December 31, 2014.
3. Determine the amount at which the Petty Cash Fund will be stated in the
balance sheet as of December 31, 2014.