On September 1, a company established a petty cash fund of $130. On September 10, the petty cash fund was replenished when there was $31 remaining and there were petty cash receipts for supplies, $33, and postage, $60. On September 15, the petty cash fund was increased to $170. Required: Prepare the journal entries, if any, required on September 1, September 10, and September 15. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Question

Roth

Business

14 March, 02:56

On September 1, a company established a petty cash fund of $130. On September 10, the petty cash fund was replenished when there was $31 remaining and there were petty cash receipts for supplies, $33, and postage, $60. On September 15, the petty cash fund was increased to $170. Required: Prepare the journal entries, if any, required on September 1, September 10, and September 15. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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Blaise · Answer 1

See the explanation below

Explanation:

1. On September 1

DR ($) CR ($)

Petty cash account 130

Cash account 130

Being the petty cash fund establishment amount.

2. On September 10

DR ($) CR ($)

Petty cash account 99

Cash account 99

Being the amount used to replenish the petty cash fund.

Supplies 33

Postage 60

Petty Cash Account 93

Being the amount paid for supplies and postage

3. On September 15

DR ($) CR ($)

Petty cash account 133

Cash account 133

Being addition of the amount used to replenish ($93) and increase ($40) petty cash fund to $170.

Note:

1. On September 10, replenishment amount is $130 - $31 = $99.

2. On September 15, replenishment amount is the addition $93 already spent and additional $40 to increase the petty fund to $170.