Journalize the entries to record the following: Check is issued to establish a petty cash fund of $750. The amount of cash in the petty cash fund is now $176. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $248; miscellaneous selling expense, $212; miscellaneous administrative expense, $96. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $750, record the discrepancy in the cash short and over account.) a. Journalize the entry to establish the petty cash fund. b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank.

Question

Business

Wilson

14 December, 10:52

Journalize the entries to record the following: Check is issued to establish a petty cash fund of $750. The amount of cash in the petty cash fund is now $176. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $248; miscellaneous selling expense, $212; miscellaneous administrative expense, $96. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $750, record the discrepancy in the cash short and over account.) a. Journalize the entry to establish the petty cash fund. b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank.

+4

Answers (1)

Know the Answer?

Kamren Watts · Answer 1

The journal entries are shown below:

a.

Petty cash A/c Dr $750

To Cash A/c $750

(Being the establishment of petty cash is recorded)

b.

Office supplies $248

Miscellaneous selling expense $212

Miscellaneous administrative expense $96

Cash short and over $18 ($750 - $556 - $176)

To Petty cash A/c $574

(Being the replenishment of petty cash fund is recorded)