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15 May, 00:00

Journalize the entries to record the following.

On March 1, Check No. 2-45-13 is issued to establish a petty cash fund of $1, 100.

On April 1, the amount of cash in the petty cash fund is now $115. Check No. 271-13 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $614; miscellaneous selling expense, $200; miscellaneous administrative expense, $145. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1, 100, record the discrepancy in the cash short and over account.)

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  1. 15 May, 00:07
    0
    The journal entries are shown below:

    1. Petty cash A/c $1,100

    To Cash A/c $1, 100

    (Being the petty cash fund is established)

    2. Office supplies A/c Dr $614

    Miscellaneous selling expense A/c Dr $200

    Miscellaneous administrative expense A/c Dr $145

    Cash short and over A/c $26

    To Petty cash A/c $985

    (Being the expenses are recorded)

    The Cash short and over is computed below:

    = $1,100 - $115 - $614 - $200 - $145

    = $26
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