Question

Petty Cash Fund Prepare journal entries for each of the following: a. Issued a check to establish a petty cash fund of $500. If an amount box does not require an entry, leave it blank. b. The amount of cash in the petty cash fund is $85. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $360 and miscellaneous selling expense, $40. Record any missing funds in the cash short and over account. If an amount box does not require an entry, leave it blank. PreviousNext

Answer 1

Answer:

petty fund    500 debit

      cash                        500 credit

--to record creation of the fund--

store supplies               360 debit

miscellaneous expense 40 debit

cash shortage loss          15 debit

           Cash                           415 credit

--to record replenishment of the bond--

Explanation:

The creation of the fun uses the cash account and the petty cash fund account

Then at replenish the company will credit cash not the petty cash fund. As the petty fund will have 500 dollars again after replenishement.

Then, it will debit the reason for the cash outlow in this case; supplies, miscellaneous and shortage loss.