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3 November, 23:20

During October, Crane Company experiences the following transactions in establishing a petty cash fund.

Oct. 1 A petty cash fund is established with a check for $146.00 issued to the petty cash custodian.

Oct. 31 A check was written to reimburse the fund and increase the fund to $196.00.

A count of the petty cash fund disclosed the following items:

Currency $59.00

Coins 2.07

Expenditure receipts (vouchers):

Supplies $24.73

Miscellaneous items 15.03

Postage 38.33

Freight-Out 5.43

Journalize the entries in october that pertain to the petty cash fund.

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  1. 4 November, 00:58
    0
    The journal entries are shown below:

    1. Petty cash A/c $146

    To Cash A/c $146

    (Being the petty cash fund is established)

    2. Office supplies A/c Dr $4.73

    Miscellaneous items $15.03

    Postage $38.33

    Freight-Out $5.43

    Cash short and over A/c $21.41 (Balancing figure)

    Petty cash A/c $50 ($196 - $146)

    To Cash $134.93 ($196 - $59 - $2.07)

    (Being the expenses are recorded)
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