Journalize the entries to record the following.

On March 1, Check No. 2-45-13 is issued to establish a petty cash fund of $1, 100.

On April 1, the amount of cash in the petty cash fund is now $115. Check No. 271-13 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $614; miscellaneous selling expense, $200; miscellaneous administrative expense, $145. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1, 100, record the discrepancy in the cash short and over account.)

Question

Cheyanne Blevins

Business

22 February, 01:19

Journalize the entries to record the following.

On March 1, Check No. 2-45-13 is issued to establish a petty cash fund of $1, 100.

On April 1, the amount of cash in the petty cash fund is now $115. Check No. 271-13 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $614; miscellaneous selling expense, $200; miscellaneous administrative expense, $145. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1, 100, record the discrepancy in the cash short and over account.)

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Answers (1)

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Mara Schultz · Answer 1

The journal entries are shown below:

1. Petty cash A/c $1,100

To Cash A/c $1, 100

(Being the petty cash fund is established)

2. Office supplies A/c Dr $614

Miscellaneous selling expense A/c Dr $200

Miscellaneous administrative expense A/c Dr $145

Cash short and over A/c $26

To Petty cash A/c $985

(Being the expenses are recorded)

The Cash short and over is computed below:

= $1,100 - $115 - $614 - $200 - $145

= $26