Question

During October, Blossom Company experiences the following transactions in establishing a petty cash fund.

Oct. 1		A petty cash fund is established with a check for $147.00 issued to the petty cash custodian.
31		A check was written to reimburse the fund and increase the fund to $197.00. A count of the petty cash fund disclosed the following items:

Currency				$59.00
Coins				2.06
Expenditure receipts (vouchers):
Supplies		$24.74
Telephone, Internet, and fax		15.04
Postage		38.34
Freight-Out		5.44

Journalize the entries in October that pertain to the petty cash fund. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Date	Title	Debit	Credit
$ 37,165	Petty cash fund	$        147
	Cash		$        147
	(To record petty cash fund established)
$ 11,597	Supplies	$    24.74
	Telephone, internet and fax	$    15.04
	Postage	$    38.34
	Freight out	$      5.44
	Cash short/over	$      2.38
	Petty cash fund		$    85.94
	(To record petty cash expenses)
$ 11,597	Petty cash fund ($197-$61.06)	$ 135.94
	Cash		$ 135.94
	(To record increase the petty cash fund)

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