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7 April, 09:52

On April 2, Granger Sales decides to establish a $360 petty cash fund to relieve the burden on Accounting. Required: (a) Journalize the establishment of the fund/. / * (b) On April 10, the petty cash fund has receipts for mail and postage of $34, contributions and donations of $19, meals and entertainment of $112, and $191 in the ending cash balance. Journalize the replenishment of the fund/. / * (c) On April 11, Granger Sales decides to increase petty cash to $470. Journalize this event/. / * * Refer to the Chart of Accounts for exact wording of account titles.

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  1. 7 April, 11:03
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    The Journal entries are as follows:

    (a) On April 2,

    Petty cash A/c Dr. $360

    To cash $360

    (To record the petty cash fund)

    (b) On April 10,

    Mail & Postage A/c Dr. $34

    Contributions and Donations A/c Dr. $19

    Meals & entertainment A/c Dr. $112

    Cash Short and Over A/c Dr. $4

    To cash ($360 - $191) $169

    (To record the replenishment of the fund)

    (c) On April 11,

    Petty Cash A/c ($470 - $360) Dr. $110

    To cash A/c $110

    (To record the increase in petty cash fund)
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