Lang Company completed the following petty cash transactions during April 2022DateReceipt #ForAmountApr 10 Cheque to establish Petty Cash Fund$100Apr 151Paid courier, to deliver goods sold to a customer$14.10Apr 172Freight for inventory purchased(Perpetual system)$28.90Apr 193Receipt from Staples for paper$11.45Apr 214Receipt from Petro Canada$38.00Apr 245Postage$5.55Apr 25 Fund counted, funds remaining$4.00 Prepare a journal entry to record the establishing the petty cash fund.Prepare a journal entry to record the reimbursement and increase of the fund to $125. (from $100 to $125)Now assume, the Part 2 did not happen and the fund decreased from $100 to $75, prepare a journal entry to record the reimbursement and decrease of the fund

Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Answered: Lang Company completed the following…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.6E

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Lang Company completed the following petty cash transactions during April 2022

Date	Receipt #	For	Amount
Apr 10		Cheque to establish Petty Cash Fund	$100
Apr 15	1	Paid courier, to deliver goods sold to a customer	$14.10
Apr 17	2	Freight for inventory purchased(Perpetual system)	$28.90
Apr 19	3	Receipt from Staples for paper	$11.45
Apr 21	4	Receipt from Petro Canada	$38.00
Apr 24	5	Postage	$5.55
Apr 25		Fund counted, funds remaining	$4.00

Prepare a journal entry to record the establishing the petty cash fund.
Prepare a journal entry to record the reimbursement and increase of the fund to $125. (from $100 to $125)
Now assume, the Part 2 did not happen and the fund decreased from $100 to $75, prepare a journal entry to record the reimbursement and decrease of the fund

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