Cycle Tech Bicycles decided to establish a petty cash fund. On February 1 the accountant issued Check 3724 for $120 to establish the fund. The following disbursements were made. 1. In your working papers, record the entry to establish the petty cash fund in a general journal, page 5. 2. Enter the information about the establishment of the petty cash fund on line 1 of a petty cash register, page 1. 3. Record the petty cash disbursements in the petty cash register. 4. Foot, total, and prove the petty cash register on February 28. 5. Record the petty cash fund replenishment information in the explanation column below the totals. On February 28 there was$4.35 in the petty cash box. 6. Prepare a petty cash requisition form. Use the form provided in your working papers and sign your name as petty cashier. 7. Record the issuance of Check 3875 to replenish the petty cash fund in the general journal, page 8.

$$\begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{Feb. 2} & \text{Prepared Voucher 1 for a \$9.25 newspaper advertisement (Advertising Expense).}\\ \text{5} & \text{Prepared Voucher 2 for pens and pencils, \$5 (Supplies).}\\ \text{9} & \text{Paid \$12.50 for flowers for an employee’s birthday, Voucher 3 (Miscellaneous Expense).}\\ \text{12} & \text{Bought cash register tape for \$3.95, Voucher 4 (Supplies).}\\ \text{19} & \text{Prepared Voucher 5 for \$15 to pay National Express for parts}\\ \text{ } & \text{delivered (Delivery Expense).}\\ \text{20} & \text{Paid \$3.90 for postage stamps, Voucher 6 (Miscellaneous Expense).}\\ \text{22} & \text{Paid \$16 to have the show window cleaned, Voucher 7}\\ \text{ } & \text{(Miscellaneous Expense).}\\ \text{24} & \text{Bought an \$11 advertisement in the local newspaper,}\\ \text{ } & \text{Voucher 8 (Advertising Expense).}\\ \text{25} & \text{Bought stationery for \$10, Voucher 9 (Supplies).}\\ \text{26} & \text{Prepared Voucher 10 to National Express for packages }\\ \text{ } & \text{delivered, \$8.25 (Delivery Expense).}\\ \text{27} & \text{Prepared Voucher 11 incorrectly and voided it.}\\ \text{27} & \text{Purchased memo pads for the office for \$3, Voucher 12 (Supplies).}\\ \text{28} & \text{Paid the news carrier a \$4 tip for the daily newspaper}\\ \text{ } & \text{delivery, Voucher 13 (Miscellaneous Expense). }\\ \text{28} & \text{Paid \$6.80 for postage stamps, Voucher 14 (Miscellaneous Expense).}\\ \text{28} & \text{Prepared Voucher 15 for a \$10 newspaper advertisement }\\ \text{ } & \text{(Advertising Expense).}\\ \end{array}$$

Identify the number of payments that were made from the petty cash fund during the month of February.

InBeat CD Shop established a petty cash fund for $100. 1. In your working papers, record the entry to establish the petty cash fund on page 6 of a general journal. 2. Record the entry for replenishing the petty cash fund on page 10 of the general journal. There was$5 cash in the petty cash fund box on February 28.

$$\begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{Feb. 1} & \text{Issued Check 112 for \$100 to establish the petty cash fund.}\\ \text{28} & \text{Issued Check 146 to replenish the petty cash fund. Paid}\\ \text{ } & \text{petty cash vouchers included Supplies, \$40; Advertising}\\ \text{ } & \text{Expense, \$16; Maintenance Expense, \$27; and Miscellaneous }\\ \text{ } & \text{Expense, \$12.}\\ \end{array}$$

Conclude whether cash was short or over.

River’s Edge Canoe & Kayak petty cash fund was established on February 1 for $100, by writing check 1763. The accounts for which petty cash disbursements are likely to be made include Supplies, Gas Expense, Advertising Expense, Delivery Expense, and Miscellaneous Expense. 1. In your working papers, record the entry to establish the petty cash fund on page 12 of a general journal. 2. Record the establishment of the fund on the first line of the petty cash register, page 1. 3. Record each petty cash disbursement in the petty cash register. 4. Foot, prove, total, and rule the petty cash register on February 28. 5. Reconcile the petty cash fund. The amount in the petty cash box is$1.50. 6. Prepare a petty cash requisition. Sign your name as petty cashier. 7. Record the entry to replenish the petty cash fund by issuing Check 1798 in the general journal, page 15. 8. Record the replenishment information in the petty cash register. 9. The accountant believes the petty cash fund should be increased by $25. Record the issuance of Check 1799 on February 28.$

$$\begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{Feb. 1} & \text{Bought an \$8 advertisement in the local newspaper, }\\ \text{ } & \text{Voucher 101. }\\ \text{2} & \text{Prepared Voucher 102 for \$7.50 to pay Mercury Messenger for}\\ \text{ } & \text{packages delivered.}\\ \text{3} & \text{Bought adding machine tape for 75 cent, Voucher 103. }\\ \text{5} & \text{Paid \$9.50 for flowers for an employee’s birthday,}\\ \text{ } & \text{Voucher 104. }\\ \text{7} & \text{Prepared Voucher 105 for \$5.25 for a typewriter ribbon. }\\ \text{9} & \text{Paid \$4.40 for postage stamps, Voucher 106.}\\ \text{12} & \text{Bought \$9 worth of gasoline, Voucher 107.}\\ \text{15} & \text{Paid \$8.50 to have the shop’s windows washed, Voucher 108. }\\ \text{18} & \text{Bought memo pads, pencils, and pens for office use, \$6.30,}\\ \text{ } & \text{Voucher 109. }\\ \text{20} & \text{Prepared Voucher 110 for \$7.50 to pay Mercury Messenger for }\\ \text{ } & \text{packages delivered.}\\ \text{23} & \text{Prepared Voucher 111 incorrectly and voided it.}\\ \text{23} & \text{Bought stationery for \$8, Voucher 112.}\\ \text{27} & \text{Paid the news carrier \$4.75 for the daily newspaper,}\\ \text{ } & \text{Voucher 113.}\\ \text{28} & \text{Prepared Voucher 114 for \$7.50 to pay Mercury Messenger for}\\ \text{ } & \text{packages delivered.}\\ \text{28} & \text{Bought gasoline, \$5.80, Voucher 115. }\\ \text{28} & \text{Prepared Voucher 116 for a newspaper advertisement, \$5.}\\ \end{array}$$

$ List the petty cash disbursements that are charged to the Miscellaneous Expense account.

Cycle Tech Bicycles had the following cash payment transactions in March. In your working papers, record the transactions on page 19 of the general journal.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Mar. 1} & \text{Purchased $\$ 1,800$ in merchandise from Summit Bicycles, Check $2111.$}\\ \text{3} & \text{Issued Check 2112 for $\$ 2,450$ to Spaulding Inc. in payment of the $\$ 2,500$ account balance less a 2$\\\%$ cash discount of $\$ 50 .$}\\ \text{7} & \text{Issued Check 2113 for $\$ 3,100$ to Desert Palms Insurance Company for the annual business insurance premium. }\\ \text{12} & \text{Paid $\$ 175$ to Viking Express for delivery of merchandise purchased from Schwinn Inc., FOB shipping point, Check 2114.}\\ \text{17} & \text{Issued Check 2115 to Suspension Specialists for $\$ 3,880$ in payment of Invoice 1492 for $\$ 4,000$ less a 3$\\\%$ cash discount of $\$ 120$.}\\ \text{20} & \text{Received the March bank statement and recorded bankcard fees of $\$ 275 .$}\\ \text{24} & \text{Paid All-Star News $\$ 130$ to run an advertisement promoting the store, Check 2116.}\\ \text{28} & \text{Bought $\$ 100$ in supplies and $\$ 700$ in store equipment from Superior Store Equipment Inc., Check 2117 for $\$ 800$.}\\ \text{31} & \text{Issued Check 2118 for $\$ 2,185.50$ in payment of monthly wages of $\$ 3,000$ less deductions for the following taxes: Employees' Federal Income Tax Payable, $\$ 480 ;$ Employees' State Income Tax Payable, $\$ 105 ;$ Social Security Tax Payable, $\$ 186 ;$ and Medicare Tax Payable, $\$ 43.50$. }\\ \end{array}$$

Determine the total decrease to the checking account for the month.

Moya Co. establishes a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in January (the last month of the company’s fiscal year).

$$\begin{matrix} \text{Jan. 3} & \text{A company check for \$150 is written and made payable to the petty cashier to establish the petty cash fund.}\\ \text{14} & \text{A company check is written to replenish the fund for the following expenditures made since January 3.}\\ \quad & \text{a. Purchased office supplies for \$14.29 that are immediately used up}\\ \quad & \text{b. Paid \$19.60 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Moya uses the perpetual system to account for inventory.}\\ \quad & \text{c. Paid \$38.57 to All-Tech for repairs expense to a computer}\\ \quad & \text{d. Paid \$12.82 for items classified as miscellaneous expenses.}\\ \quad & \text{e. Counted \$62.28 remaining in the petty cashbox.}\\ \text{15} & \text{Prepared a company check for \$50 to increase the fund to \$200.}\\ \text{31} & \text{The petty cashier reports that \$17.35 remains in the fund. A company check is written to replenish the fund for the following expenditures made since January 14.}\\ \quad & \text{f. Paid \$50 to The Smart Shopper in advertising expense for January’s newsletter.}\\ \quad & \text{g. Paid \$48.19 for postage expenses}\\ \quad & \text{h. Paid \$78 to Smooth Delivery for delivery expense of merchandise, terms FOB destination}\\ \text{31} & \text{The company decides that the January 15 increase in the fund was too little. It increases the fund by another \$50, leaving a total of \$250.}\\ \end{matrix}$$

1. Prepare journal entries (in dollars and cents) to establish the fund on January 3, to replenish it on January 14 and January 31, and to reflect any increase or decrease in the fund balance on January 15 and 31. 2. Explain how the company’s financial statements are affected if the petty cash fund is not replenished and no entry is made on January 31.