1. LESSON 9-3 Performing Additional Cash Payments Journal Operations
4/25/2017
LESSON 9-3
Performing Additional Cash Payments Journal Operations
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2. PETTY CASH REPORT
A petty cash fund enables a business to pay cash for small expenses without writing a check.
Errors made can cause a difference between actual cash on hand and the record of the amount of cash that should be on hand
A cash short occurs when petty cash on hand is less than the recorded amount of cash on hand
A cash over occurs when petty cash on hand is more than the recorded amount of cash on hand
A petty cash report is prepared when the petty cash fund is to be replenished
LESSON 9-3

3. PETTY CASH REPORT 1. Write the date and custodian name. 1
LESSON 9-3
4/25/2017
PETTY CASH REPORT
page 248
1. Write the date and custodian name. 1
2. Write the fund total.
3. Summarize petty cash payments. 2 3
4. Calculate and write the total payments. 4
5. Calculate and write the recorded amount on hand. 5 6 7 8
6. Write the actual amount of cash on hand.
7. Subtract the actual amount on hand from the recorded amount on hand and write the amount.
8. Write the total of the replenish amount.
LESSON 9-3
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4. REPLENISHING A PETTY CASH FUND
Petty cash short and petty cash over are recorded in an account titled Cash Short and Over
Temporary account
At the end of the fiscal year, this account is closed to Income Summary
The balance can either be a debit or a credit
More likely to be a debit because the petty cash fund is more likely to be short than over
A cash shortage adds to the cost of operating a business
Classified as an operating expense
Cash Short and Over
Debit
Cash short
Credit
Cash over
LESSON 9-3

5. REPLENISHING A PETTY CASH FUND
LESSON 9-3
4/25/2017
REPLENISHING A PETTY CASH FUND
page 249
1. Date
2. Account titles
3. Check number
4. Expense amounts
5. Cash short as a debit; cash over as a credit
6. Total cash payment 4 5 6 1 3 2
LESSON 9-3
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6. TOTALING, PROVING, and RULING a CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD
A journal is proved and ruled whenever a journal page is filled and ALWAYS at the end of a month
If the total debits do not equal the total credits, the errors must be found and corrected before moving on
After a journal page has been totaled and proved, the journal is ruled in preparation for forwarding to the next page
LESSON 9-3

7. TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD1 4 2 3 5 6
1. Rule a single line.
2. Write the date.
3. Write the words Carried Forward in the Account Title column.
4. Place a check mark in the Post. Ref. column.
5. Write each column total.
6. Rule double lines.
LESSON 9-3

8. STARTING A NEW CASH PAYMENTS JOURNAL PAGE
The totals from the previous journal page are carried forward to the next journal page
The totals are recorded on the first line of the new page
LESSON 9-3

9. STARTING A NEW CASH PAYMENTS JOURNAL PAGE
LESSON 9-3
4/25/2017
STARTING A NEW CASH PAYMENTS JOURNAL PAGE
page 251 1 5 2 3 4
1. Write the journal page number.
2. Write the date.
3. Write the words Brought Forward in the Account Title column.
4. Place a check mark in the Post. Ref. column.
5. Record the column totals.
LESSON 9-3
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10. TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH
Equality of debits and credits in a journal is proved at the end of each month
After a cash payments journal has been totaled and proved at the end of the month, the journal is ruled
LESSON 9-3

11. LESSON 9-3
4/25/2017
TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH
page 252 1 2 3 4 5
1. Rule a single line.
2. Write the date.
3. Write the word Totals in the Account Title column.
4. Write each column total.
5. Rule double lines.
LESSON 9-3
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12. TERMS REVIEW
page 253
cash short
cash over
LESSON 9-3

13. Work Together 9-3 pg. 253
Performing other cash payments journal operations *The abbreviation for a check is C. Rule page 5 of the cash payments journal using March 27 of the current year. Begin page 6 of a cash payments journal Kevin Tomlinson is the custodian of a $ petty cash account. On March 31, he had receipts for the following total payments: supplies – office, $45.23; supplies – store, $66.18; miscellaneous, $ A cash count shows $40.59 in the petty cash box. Prepare the cash report. Record the replenishment of the fund on March 31. C536 Total, prove, and rule the cash payments journal.
LESSON 9-3

14. Performing Other Cash Payments Journal Operations Example
Rule page 5 of the cash payments journal using March 27 of the current year. 5 27
Carried Forward ✔
18,486.85
458.86
16,483.50
251,34
34,260.45
LESSON 9-3

15. Performing Other Cash Payments Journal Operations Example
Begin page 6 of a cash payments journal. 6
Mar. 27
Brought Forward ✔
458.56
251.34 31
Supplies - Office
54.23
536
66.18
Supplies - Store
49.25
Miscellaneous Expense
1.25
Cash Short and Over
251.34
Totals 31
459.81
LESSON 9-3

16. Performing Other Cash Payments Journal Operations Example
March 31, 2011
Kevin Tomlinson
200.00
45.23
66.18
49.25
160.66
160.66
39.34
40.59
(1.25)
(1.25)
159.41
LESSON 9-3

17. Performing Other Cash Payments Journal Operations Example
$ 18,647.51 $
16,483.50
251.34
34,419.86
$35,131.01
$35,131.01
LESSON 9-3

18. ON YOUR OWN 9-3 page 253
Performing other cash payments journal operations *The abbreviation for a check is C. Rule page 11 of the cash payments journal using June 28 of the current year. Begin page 12 of a cash payments journal Jerri Harris is the custodian of a $ petty cash account. On June 30, she had receipts for the following total payments: supplies – office, $56.21; supplies – store, $48.27; repairs - $82.25; miscellaneous, $ A cash count shows $26.48 in the petty cash box. Prepare the petty cash report. Record the replenishment of the fund on March 30. C627 Total, prove, and rule the cash payments journal.
LESSON 9-3

19. AUDIT YOUR UNDERSTANDING
Answer the following questions using Word.
Turn in when done.
When journalizing a cash payment to replenish petty cash, what is entered in the Account Title column of the cash payments journal?
What is the usual balance of the account Cash Short and Over?
List the five steps for ruling a cash payments journal at the end of the month.
LESSON 9-3

20. APPLICATION PROBLEM 9-3 and 9-4
Complete Application Problems 9-3 and 9-4 (page 261) using the aplia online working papers
LESSON 9-3