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21 November, 20:30

The petty cash fund of the Brooks Agency is established at $220. At the end of the current period, the fund contained $155 and had the following receipts: entertainment, $42; postage, $13; and printing, $10. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.

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  1. 21 November, 20:52
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    Explanation: Journal Entries:

    DR: Petty Cash with $220

    CR: Bank/Cash with $220

    Being establishment of funds in petty cash

    DR: Entertainment with $42

    CR: Petty cash with $42

    Being cost of entertainment

    DR: Postage with $13

    CR: Petty cash with $13

    Being cost of postage

    DR: Printing with $10

    CR: Petty cash with $10

    Being cost of printing
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