A small company maintains a petty cash fund for minor expenditures. In June and
ID: 2381383 • Letter: A
Question
A small company maintains a petty cash fund for minor expenditures. In June and July 2011, the following transactions took place:
1. The fund was established in the amount of $100.00 on June 1 from the proceeds of check no. 2707.
2. On June 30, the petty cash fund had cash of $15.46 and the following receipts on hand: postage, $40.00; supplies, $24.94; delivery service, $12.40; and rubber stamp, $7.20. Check no. 2778 was drawn to replenish the fund.
3. On July 31, the petty cash fund had cash of $22.06 and these receipts on hand: postage, $34.20; supplies, $32.84; and delivery service, $6.40. The petty cash custodian could not account for the shortage. Check no. 2847 was drawn to replenish the fund.
Prepare entries in journal form necessary to record each transaction.
I know that the first one is
Debit: Petty Cash 100
Credit: Cash 100
Explanation / Answer
A small company maintains a petty cash fund for minor expenditures. In June and July 2011, the following transactions took place:
1. The fund was established in the amount of $100.00 on June 1 from the proceeds of check no. 2707
Debit: Petty Cash 100
Credit: Cash 100
2. On June 30, the petty cash fund had cash of $15.46 and the following receipts on hand: postage, $40.00; supplies, $24.94; delivery service, $12.40; and rubber stamp, $7.20. Check no. 2778 was drawn to replenish the fund.
Debit: Postage expense 40.00
Debit: Supplies expense 24.94
Debit: Delivery expense 12.40
Debit: Miscellaneous Expense 7.20
Credit: Cash 84.54
3. On July 31, the petty cash fund had cash of $22.06 and these receipts on hand: postage, $34.20; supplies, $32.84; and delivery service, $6.40. The petty cash custodian could not account for the shortage. Check no. 2847 was drawn to replenish the fund.
Debit: Postage expense 34.20
Debit: Supplies expense 32.84
Debit: Delivery expense 6.40
Debit: Cash over and short 4.50
Credit: Cash 77.94