Question

Here is the problem:

The following transactions relate to the petty cash fund of Karvis Company:

May 1	The petty cash fund is set up with a $200 cash balance.
May 13	Because the money in the petty cash box is down to $30.20, the fund is replenished. The petty cash vouchers at the time of replenishment are as follows: Flowers for hospitalized employee (miscellaneous expense) $50.60 Postage stamps $54.36 Office supplies $62.33
May 31	The cash in the petty cash box is $40.40, and the fund is replenished in order to include the petty cash activities in the monthly financial statements for the month of May. The petty cash vouchers are for the following: Transportation in $105.00 Office supplies $70.70
June 1	To provide for a larger petty cash fund, the petty cash fund was increased to $300.

Required: Prepare the journal entries to record these transactions.

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Answer 1

Date	accounts	Debit	credit
May 1	Petty cash	200
	Cash		200
May 13	miscellaneous expense	50.60
	Postage expense	54.36
	Office supplies	62.33
	Cash short and over	2.51
	Cash (200-30.20)		169.80
May 31	Transportation expense	105
	Office supplies	70.70
	Cash short and over		16.10
	Cash (200-40.40)		159.60
June 1	petty cash (300-200)	100
	Cash		100