Question

Jeremiah Restoration Company completed the following selected transactions during January:

Jan.	1.	Established a petty cash fund of $745.
	12.	The cash sales for the day, according to the cash register records, totaled $12,987. The actual cash received from cash sales was $13,011.
	31.	Petty cash on hand was $154. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:

Jan.	3.	Store supplies, $387.
	7.	Express charges on merchandise sold, $34 (Delivery Expense).
	9.	Office supplies, $15.
	13.	Office supplies, $28.
	19.	Postage stamps, $12 (Office Supplies).
	21.	Repair to office file cabinet lock, $13 (Miscellaneous Administrative Expense).
	22.	Postage due on special delivery letter, $25 (Miscellaneous Administrative Expense).
	24.	Express charges on merchandise sold, $57 (Delivery Expense).
	30.	Office supplies, $7.

Jan.	31.	The cash sales for the day, according to the cash register records, totaled $19,707. The actual cash received from cash sales was $19,669.
	31.	Decreased the petty cash fund by $105.

Required:

Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Chart of Accounts

CHART OF ACCOUNTS
Jeremiah Restoration Company
General Ledger
ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 591 Miscellaneous Administrative Expense 592 Miscellaneous Selling Expense 710 Interest Expense

Journal

Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Answer 1

Solution:
Date	Ledger No.	Chart of Accounts	Debit	Credit
Jan-01	111	Petty Cash	$745.00
	110	Cash		$745.00
Jan-03	538	Store Supplies Expense	$387.00
	111	Petty Cash		$387.00
Jan-07	532	Delivery Expense	$34.00
	111	Petty Cash		$34.00
Jan-09	534	Office Supplies Expense	$15.00
	111	Petty Cash		$15.00
Jan-12	110	Cash	$13,011.00
	410	sales		$12,987.00
	120	Accounts receivable		$24.00
Jan-13	534	Office Supplies Expense	$28.00
	111	Petty Cash		$28.00
Jan-19	534	Office Supplies Expense	$12.00
	111	Petty Cash		$12.00
Jan-21	591	Miscellaneous Administrative Expense	$13.00
	111	Petty Cash		$13.00
Jan-22	591	Miscellaneous Administrative Expense	$25.00
	111	Petty Cash		$25.00
Jan-24	532	Delivery Expense	$57.00
	111	Petty Cash		$57.00
Jan-30	534	Office Supplies Expense	$7.00
	111	Petty Cash		$7.00
Jan-31	110	Cash	$19,669.00
	120	Accounts receivable	$38.00
	410	sales		$19,707.00
Jan-31	110	Cash	$105.00
	111	Petty Cash		$105.00
Statement of Petty Cash
Jan-01	110	From Cash		$745.00
		Expended During the month
Jan-03	538	Store Supplies Expense	$387.00
Jan-07	532	Delivery Expense	$34.00
Jan-09	534	Office Supplies Expense	$15.00
Jan-13	534	Office Supplies Expense	$28.00
Jan-19	534	Office Supplies Expense	$12.00
Jan-21	591	Miscellaneous Administrative Expense	$13.00
Jan-22	591	Miscellaneous Administrative Expense	$25.00
Jan-24	532	Delivery Expense	$57.00
Jan-30	534	Office Supplies Expense	$7.00
				$578.00
		Closing Balance		$167.00
		Given in Question		$154.00
		Difference		$13.00
On Jan-31 $105 been removed from Petty cash and transeferred to Cash Account.