I need help with this question Exercise 7-22 Your answer is incorrect. Try again
ID: 2350369 • Letter: I
Question
I need help with this question Exercise 7-22 Your answer is incorrect. Try again. McMann, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April. 1. On April 1, it established a petty cash fund in the amount of $306. 2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows. Delivery charges paid on merchandise purchased $73 Supplies purchased and used $38 Postage expense $53 I.O.U. from employees $30 Miscellaneous expense $49 The petty cash fund was replenished on April 10. The balance in the fund was $52. 3. The petty cash fund balance was increased by $113 to $419 on April 20. Prepare the journal entries to record transactions related to petty cash for the month of April.Explanation / Answer
April 1: Petty Cash 306(DR) Regular Cash 306(CR) to set up fund April 10: Delivery expense 73DR Misc. expense 49DR Postage expense 53DR Supply expense 38DR Loan from Employee 30DR to record disbursements from petty cash fund Misc Expense (or Cash Over/Under) 2 DR Petty Cash 2 CR to record petty cash over/under April 10 Petty Cash 254DR Regular Cash 254CR to record replenishment of petty cash fund April 30 Petty Cash 113DR Regular cash 113CR to record increase in amount of petty cash fund DR=debit CR=credit