Petty cash fund entries Chart of Accounts Journal Instructions Journalize the en
ID: 2430445 • Letter: P
Question
Petty cash fund entries Chart of Accounts Journal Instructions Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles) Instructions A On March 1, Check is issued to establish a petty cash fund of $1, 125 B. On April 1, the amount of cash in the petty cash fund is now $122. Check is issued to replenish the fund, based on the following summary of petty cash receipts office supplies, $594, miscellaneous selling expense, $216, miscellaneous administrative expense $168 (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,125, record the discrepancy in the cash short and over account)Explanation / Answer
a
Journalize the entries to establish the petty cash fund
General description
Debit
credit
Petty cash
900
Cash
900
b
Journalize the entry to replenish the petty cash fund
Accounting equation
General description
Debit
credit
Assets
Liabilities
Equity
Office supplies
$594
($594)
Miscellaneous selling expenses
$216
($216)
Miscellaneous administrative expenses
$168
($168)
Cash short and over (Bal.fig)
$25
($25)
Cash ($1125-$122)
$1,003
$1,003
a
Journalize the entries to establish the petty cash fund
General description
Debit
credit
Petty cash
900
Cash
900
b
Journalize the entry to replenish the petty cash fund
Accounting equation
General description
Debit
credit
Assets
Liabilities
Equity
Office supplies
$594
($594)
Miscellaneous selling expenses
$216
($216)
Miscellaneous administrative expenses
$168
($168)
Cash short and over (Bal.fig)
$25
($25)
Cash ($1125-$122)
$1,003
$1,003