Question

Journalize the Following Transactions (10pts)

On June 1 of this year, Duck and Jive’s established a Petty Cash Fund for $125. The petty cash analysis sheet showed the following totals at the end of the month:

Automobile expense               $18.00

Travel expense                        13.50

Drawing                                  40.00

Phone expense                          8.12

Office Supplies                       14.23

Postage expense                        6.20

                                                $100.05

At the end of June the petty cash fund had a balance of $24.95 and the fund was replenished.

Pretend you have a general journal and record the journal entries to establish the petty cash fund at the beginning of the month and to reimburse the petty cash fund. Make sure to make it obvious which accounts are being debited and credited.

Example:

April 1 Cash 3,000

A/R 3,000

Answer 1

Journal

Event	Account Title and Explanation	Debit	Credit
1	Petty cash	125
	Cash		125
	(To establish petty cash fund)
2	Automobile expense	18
	Travel expense	13.50
	Drawing	40
	Phone expense	8.12
	Office Supplies	14.23
	Postage expense	6.20
	Cash		100.05
	(To record replenishment of petty cash fund)

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