Question

Journalize the entries to record the following:

1. Check No. 245-13 is issued to establish a petty cash fund of $1,300.
2. The amount of cash in the petty cash fund is now $468. Check No. 271-13 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $483; miscellaneous selling expense, $200; miscellaneous administrative expense, $125.

Answer 1

Journal Entries:

Transaction	General journal	Debit	Credit
a	Petty Cash	$1300
	Cash		$1300
	( To record Establishment of fund )
Transaction	General journal	Debit	Credit
b	Office Supplies	$483
	Misc Selling Expenses	$200
	Misc Administrative Expense	$125
	Cash Short and Over	$24
	Cash		$832
	(To record the replenishment of Petty cash fund)