Havermill co. establishes a $470 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $95 for office supplies, $181 for merchandise inventory, and $44 for miscellaneous expenses. the fund has a balance of $150. on october 1, the accountant determines that the fund should be increased by $94. the journal entry to record the establishment of the fund on september 1 is:

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Business

Dylan Russo

7 October, 05:43

Havermill co. establishes a $470 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $95 for office supplies, $181 for merchandise inventory, and $44 for miscellaneous expenses. the fund has a balance of $150. on october 1, the accountant determines that the fund should be increased by $94. the journal entry to record the establishment of the fund on september 1 is:

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Weston Mayo · Answer 1

The journal entry to record the establishment of the fund on september 1 is:

1 September Petty Cash $ 470 Dr.

Cash $ 470 Cr.

31st September Office supplies, $95 Dr.

Merchandise inventory, $ 181 Dr.

Miscellaneous expenses $ 44 Dr.

Cash $320 Cr.

To reimburse Petty Cash

The journal entry to reimburse and to increase the fund are same.

October 1 Petty Cash $ 94

Cash $ 94

To increase the Petty Cash by $ 94