Chapter 5, Section 4 Petty Cash

Slides:

Advertisements

Similar presentations

Accounting I Chapter 10 - Journalizing Purchases & Cash Payments.

Advertisements

Partnership The main difference between a service business and a merchandising business is?

© 2014 Cengage Learning. All Rights Reserved.

Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO9 Establish a petty cash fund. LO10 Prepare a petty cash report. LO11 Replenish a petty.

Chapter 5, Section 3 Dishonored Checks and Electronic Banking

Chapter 9, Section 3.  What is petty cash used for?  Petty Cash Report Used to account for petty cash payments and show if cash is short or over. Cash.

Accounting for Plant Assets and Depreciation Chapter 18, Section 1 Buying Plant Assets and Paying Property Taxes.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-1 Checking Accounts.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-4 Petty Cash.

LESSON 5-1 Checking Accounts

Posting from a General Journal to a General Ledger Accounting I Chapter 4, Section 3.

Review: What is the left side of the Accounting Equation called? Assets What is the right side of the Accounting Equation called? Equities: Liabilities.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-4 Petty Cash Create a Petty Cash Account Prepare Petty Cash Slips Replenish Petty Cash and create.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-4 Petty Cash.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-4 Petty Cash.

LESSON 5-4 Petty Cash. TERMS Petty cash: an amount of cash kept on hand (in cash box) and used for making small payments Maximum amount differs between.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-4 Petty Cash.

© 2000 South-Western Educational Publishing ESTABLISHING A PETTY CASH FUND August 17. Paid cash to establish a petty cash fund, $ Check No Which.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-4 Petty Cash Def. – an amount of cash kept on hand and used for making small payments Purpose –

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-4 Petty Cash Original created by M.C. McLaughlin, Thomson/South-Western Modified by Deborah L. Burns,

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-4 Petty Cash.

© 2000 South-Western Educational Publishing CASH PAYMENT ON ACCOUNT Write the check number. 1. Write the date. 4.Write the debit amount. 2.Write.

Journalizing Petty Cash and using the Cash Payments Journal.

LESSON 5-4 Petty Cash December 4, O BJECTIVES Define accounting terms related to using a petty cash fund. Establish and replenish a petty cash fund.

© 2000 South-Western Educational Publishing JOURNAL PAGE WITH POSTING COMPLETED Lesson 5-4, page 112.

© 2000 South-Western Educational Publishing PAID CASH FOR INSURANCE Lesson 4-2, page 72 August 4. Paid cash for insurance, $1, Check No Which.

LESSON 1-3 Journalizing and Posting Cash Payments

© 2000 South-Western Educational Publishing RECORDING A DISHONORED CHECK ON A CHECK STUB Calculate and record the new subtotal. 1. Write Dishonored.

© South-Western Educational Publishing ESTABLISHING A PETTY CASH FUND August 17. Paid cash to establish a petty cash fund, $ Check No Which.

(American Banking Association)

CENTURY 21 ACCOUNTING © Thomson/South-Western 1 LESSON 5-1 Chapter 5.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-3 Dishonored Checks and Electronic Banking.

© 2000 South-Western Educational Publishing A FIVE-COLUMN JOURNAL Using a Journal To help save time and become more efficient, businesses use a Special.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-4 Petty Cash.

Chapter 6 – Cash Control Systems

LESSON 3-3 5/21/2018 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Blue.

LESSON 3-3 5/21/2018 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Blue.

LESSON 5-4 5/29/2018 LESSON 5-4 Petty Cash GREEN.

LESSON 5-1 5/29/2018 LESSON 5-1 Cash Control Blue.

© 2014 Cengage Learning. All Rights Reserved.

RECORDING A DISHONORED CHECK ON A CHECK STUB

Chapter 6 review slides.

© 2014 Cengage Learning. All Rights Reserved.

Chapter 11 & 22, Section 4 Petty Cash

RECORDING THE BUYING OF A PLANT ASSET

© 2014 Cengage Learning. All Rights Reserved.

LESSON 5-4 1/2/2019 LESSON 5-4 Petty Cash Blue.

LESSON 5-4 1/2/2019 LESSON 5-4 Petty Cash GREEN.

Chapter 5 Cash Control Systems.

EXPANDED JOURNAL Lesson 10-1, page 229.

© 2014 Cengage Learning. All Rights Reserved.

© 2014 Cengage Learning. All Rights Reserved.

Chapter 5 – Posting to a General Ledger

LESSON 3-3 2/24/2019 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Green.

Analyzing Transactions into Debit and Credit Parts

LESSON 5-4 4/14/2019 LESSON 5-4 Petty Cash GREEN.

LO9 Establish a petty cash fund. LO10 Prepare a petty cash report.

LESSON 5-4 4/10/2019 LESSON 5-4 Petty Cash Blue.

Chapter 6 Cash Control System.

Posting to a General Ledger

LESSON 9-3 Performing Additional Cash Payments Journal Operations

LESSON 9-3 Performing Additional Cash Payments Journal Operations

© 2014 Cengage Learning. All Rights Reserved.

SIGNING A NOTE PAYABLE  

LESSON 9-3 Performing Additional Cash Payments Journal Operations

PETTY CASH REPORT Date and Custodian Name

LESSON 3-3 7/23/2019 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Blue.

CASH PAYMENT TO REPLENISH PETTY CASH

LESSON 9-3 Performing Additional Cash Payments Journal Operations

LESSON 9-3 Performing Additional Cash Payments Journal Operations

Presentation transcript:

Chapter 5, Section 4 Petty Cash Cash Control Systems Chapter 5, Section 4 Petty Cash

Petty Cash What is petty cash? An amount of cash kept on hand and used for making small cash payments. Why would a business want to use a petty cash fund? Save time and money How does a business control the flow of money in and out of the petty cash fund? One person to manage petty cash fund. All transactions must be documented.

Establishing a Petty Cash Fund Lesson 6-4 (GJ) Establishing a Petty Cash Fund August 17. Paid cash to establish a petty cash fund, $200.00. Check No. 8. Cash Petty Cash 1. Which accounts are affected? Petty Cash Cash Debit Normal Balance 200.00  2. How is each account classified? Petty Cash is an asset account. Cash is an asset account. Debit Normal Balance 3. How is each classification changed? Petty Cash is increased. Cash is decreased. 200.00  4. How is each amount entered in the accounts? Petty Cash increases on the debit side. Cash decreases on the credit side.

Petty Cash Slip Used to document payments from the petty cash fund Shows what the payment was for Is signed by the petty cash administrator

Replenish a Petty Cash Fund What does it mean to replenish the petty cash fund? Bring the fund back to its established amount When should the fund be replenished? At the end of a month (ALWAYS) When the petty cash fund is low All petty cash slips are totaled and journalized in the corresponding account. Cash is credited for the total amount of slips

Replenish a Petty Cash Fund August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $10.00. Check No. 12. 2 1 4 3 1. Write the date. 2. Write the title of the first account debited. Write the debit amount. Write the title of the second account. Record the debit amount. 3. Write the title of the account credited. Record the credit amount. 4. Write the source document number in the Doc. No. column.

Petty cash activity

Assignment Work Together 5-4 (Textbook pg. 138) Log in to Aplia.com Application 5-4 (Textbook pg. 141) Mastery 5-5 (Textbook pg. 141-142)