The following transactions were made by Simpson Corp. in December 2015.
|
Dec. |
1 |
Established a petty cash fund of $100. |
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|
14 |
Reimbursed the fund for receipts as follows: |
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|
Office supplies |
$50 |
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|
Maintenance |
35 |
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|
Petty cash on hand prior to reimbursement was $46. |
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|
29 |
Reimbursed the fund for the following: |
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|
Office supplies |
$10 |
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|
Delivery charges |
20 |
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Petty cash on hand prior to reimbursement was $72. |
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|
31 |
Reduced the amount of the fund to $50. |
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Required:
- Prepare journal entries to record these transactions.
- Suggest improvements to the internal controls of Simpson’s petty cash fund.
- 1452 reads
