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.

Question

Business

Madyson Fleming

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.

+4

Answers (1)

Know the Answer?

Damaris Pena · Answer 1

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)