Question

Bramble Company established a petty cash fund on May 1, cashing a check for $105. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $3.40. Receipts: delivery expense $27.40, postage expense $37.90, and miscellaneous expense $33.30. July 1: Cash in fund $3.95. Receipts: delivery expense $20.95, entertainment expense $53.20, and miscellaneous expense $26.90. On July 10, Bramble increased the fund from $105 to $135.00. Prepare journal entries for Bramble Company for May 1, June 1, July 1, and July 10.

Answer 1

Answer:

May 01

Dr Petty cash $105

Cr Cash $105

Jun 01

Dr Delivery Expense $27.40

Dr Postage Expense $37.90

Dr Miscellaneous Expense $33.30

Dr Cash over/short $3.00

($101.6-$27.40-$37.90-$33.30)

Cr Petty Cash $101.6

Jul 01

Dr Delivery expense $27.40

Dr Entertainment expense $53.20

Dr Miscellaneous expense $33.30

Cr Petty Cash $113.9

Jul 10

Dr Petty cash $30.00

Cr Cash $30.00

Explanation:

Preparation of the journal entries for Bramble Company for May 1, June 1, July 1, and July 10

May 01

Dr Petty cash $105

Cr Cash $105

Jun 01

Dr Delivery Expense $27.40

Dr Postage Expense $37.90

Dr Miscellaneous Expense $33.30

Dr Cash over/short $3.00

($101.6-$27.40-$37.90-$33.30)

Cr Petty Cash ($105 - $3.40) $101.6

Jul 01

Dr Delivery expense $27.40

Dr Entertainment expense $53.20

Dr Miscellaneous expense $33.30

Cr Petty Cash $113.9

($27.40+$53.20+$33.30)

Jul 10

Dr Petty cash $30.00

Cr Cash $30.00

($135-$105)