Prepare journal entries for each of the following

(A) On March 1, issued a check to establish a petty cash fund of $1,000.

(B) On April 1, the amount of cash in the petty cash fund is $315. Issued a check to replenish the fund, based on the following summary of petty cash receipts: repair expense, $600, and miscellaneous selling expense, $56. Record any missing funds in the cash short and over account.

Question

Business

Gustavo Stephenson

25 June, 21:01

Prepare journal entries for each of the following

(A) On March 1, issued a check to establish a petty cash fund of $1,000.

(B) On April 1, the amount of cash in the petty cash fund is $315. Issued a check to replenish the fund, based on the following summary of petty cash receipts: repair expense, $600, and miscellaneous selling expense, $56. Record any missing funds in the cash short and over account.

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Answers (1)

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Cordova · Answer 1

The Journal entries are as follows:

(a) On March 1,

Petty cash A/c Dr. $1,000

To cash $1,000

(To record petty cash fund)

(b) On April 1,

Repairs Expense A/c Dr. $600

Miscellaneous Selling Expense A/c Dr. $56

To Cash Short and Over $29

To cash $685

(To record cash short and over account.)

Notes:

Cash Short and Over = 1000 - (600 + 56 + 315)

= $29