Blake Company established a petty cash fund in the amount of $400. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $215 in cash. If the entries to record the disbursements and to replenish the fund are combined, what effect will the entries to replenish the fund have on total assets and expenses

Question

Malaki Bentley

Business

22 June, 17:04

Blake Company established a petty cash fund in the amount of $400. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $215 in cash. If the entries to record the disbursements and to replenish the fund are combined, what effect will the entries to replenish the fund have on total assets and expenses

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Nathalia Harding · Answer 1

Blake Company

Assets = Liabilities + Equity

- 395 - 215

- 180

The expenses payable are decreased and so are liabilities. The cash is also decreased.

The petty cash payments report and all receipts are given to the company cashier in exchange for check to reimburse the fund. The petty cashier cashes the check and puts the cash in the petty cash book. the company records this reimbursement as follows. ase

Miscellaneous Expenses $ 215 Dr

Cash receipts $ 180 Dr

Cash $ 395 Cr

To reimburse petty cash.