Riverbed Company designated Jill Holland as petty cash custodian and established a petty cash fund of $236. The fund is reimbursed when the cash in the fund is at $31, which it is. Petty cash receipts indicate funds were disbursed for office supplies $94 and miscellaneous expense $89. Prepare journal entries for the establishment of the fund and the reimbursement

Question

Ian Powell

Business

15 January, 05:43

Riverbed Company designated Jill Holland as petty cash custodian and established a petty cash fund of $236. The fund is reimbursed when the cash in the fund is at $31, which it is. Petty cash receipts indicate funds were disbursed for office supplies $94 and miscellaneous expense $89. Prepare journal entries for the establishment of the fund and the reimbursement

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Answers (1)

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Emiliano Henderson · Answer 1

The journal entry is shown below:

Explanation:

According to the scenario, the journal entries for the given data are as follows:

Petty cash A/c Dr $236

To Cash A/c $236

(Being establishment of the fund is recorded)

Office supplies A/c Dr $94

Misc. Expense A/c Dr $89

Cash Over / Short Dr $22 ($236 - $31 - $89 - $94)

To Cash A/c $205 ($236 - $31)

(Being Reimbursement of the fund is recorded)