On December 1 2020 wacky company established an imprest pretty cash fund.

December 1 established an impress pretty cash fund of 10,000 by writing a check on National Bank.

20 replenished the petty cash fund by writing a cheque on National Bank. The fund contained:

currency and coins 1000

voters for selling expenses 5000

vouchers for miscellaneous expenses 2000

vouchers rs for equipment 2000

December 31 the petty cash fund was not replenished. The fund contained:

currency and coins 6000

postdate employees check 2000

vouchers for selling expenses 1500

vouchers for transportation 500

2021

January 15 encashed the employees check. the preceed were retained in the fund:

distribution cost 500

administrative expenses 2000

transportation 1000

payment for suppliers invoice 1200

required:

1. prepare journal entries to record the transactions

2. how much is the petty cash on January 31 2021 before the replenishment.
 1. Journal Entries:

December 1, 2020: Petty Cash Fund 10,000 Cash (National Bank) 10,000 Established a
petty cash fund of $10,000 by writing a check on National Bank.

December 20, 2020: Various Expenses 5,000 Equipment 2,000 Transportation 2,000 Cash
(National Bank) -9,000 Replenished the petty cash fund by writing a check on National
Bank.

December 31, 2020: Cash and Coins 6,000 Employees Check 2,000 Selling Expenses
1,500 Transportation 500 Petty Cash Fund -10,000 The petty cash fund was not
replenished.

January 15, 2021: Cash (National Bank) 2,000 Employees Check -2,000 Encashed the
employees check.

January 15, 2021: Distribution Cost 500 Administrative Expenses 2,000 Transportation
1,000 Suppliers Invoice Payment 1,200 Petty Cash Fund -4,700 Recorded expenses from
the petty cash fund.

2. Calculation of Petty Cash on January 31, 2021:

Petty Cash on December 1, 2020 $10,000 Petty Cash Replenished on December 20, 2020
$9,000 Total Petty Cash $19,000 Expenses Recorded on January 15, 2021 ($4,700) Petty
Cash on January 31, 2021 $14,300

Therefore, the petty cash on January 31, 2021, before replenishment is $14,300.
Tacid company provided the following transactions:

2020

November 2 the entity established an imprest pretty cash fund of P10,000.

30 an examination of the cash fund disclosed:

currency and coin 3000

memoranda showing expenditures for:

postage 3000

supplies 5000

a check was drawn to replenish the fund and to increase its amount to P20,000.

December 31 the fund was not replenished.

currency and coin 11,000

memorandum showing expenditures for

postage 3000

supplies 4000

deposit for 20 cases of soft drinks 2000

2021

January 2 the deposit of 20 cases of soft drinks is collected.

31 a check was drawn to replenish the fund

currency and coins 1000

postage stamps 500

memoranda showing expenditures since

November 30 2022 for:

postage 5000

supplies 6000

payment of account 7000

required:

prepared journal entries to record the transactions

1. Journal Entries:

November 2, 2020: Petty Cash Fund 10,000 Cash (Bank) 10,000 Established a petty cash
fund of P10,000.

November 30, 2020: Postage 3,000 Supplies 5,000 Cash (Bank) -8,000 Replenished the
petty cash fund and increased its amount to P20,000.

December 31, 2020: Currency and Coins 11,000 Postage 3,000 Supplies 4,000 Soft Drink
Deposit 2,000 Petty Cash Fund -20,000 The petty cash fund was not replenished.

January 2, 2021: Cash (Bank) 2,000 Soft Drink Deposit -2,000 Collected the deposit of 20
cases of soft drinks.

January 31, 2021: Currency and Coins 1,000 Postage Stamps 500 Postage 5,000 Supplies
6,000 Payment of Account 7,000 Petty Cash Fund -20,500 Replenished the petty cash
fund.

2. Reconciliation of Petty Cash Fund on December 31, 2020:

Cash on Hand (currency and coins) 11,000 Expenditures: Postage 3,000 Supplies 4,000
Soft Drink Deposit 2,000 Total Expenditures 9,000 Petty Cash Shortage 1,000

The petty cash shortage of P1,000 should be charged to an expense account.

Note: The given year in the "required" section says "November 30, 2022," but it is
assumed to be a typo and treated as "November 30, 2021."