Prepare the journal entries for the following petty cash transactions of Morriso
ID: 2447530 • Letter: P
Question
Prepare the journal entries for the following petty cash transactions of Morrison Dental Supplies.
Aug. 1
Established a petty cash fund with a $200 balance.
Aug. 31
The petty cash fund has $43 in cash and $154 in petty cash tickets there were issued to pay for Office Expense ($75) and Repair Expense ($79). Replenished the fund and recorded the expenditures.
Oct. 15
Increased the balance of the petty cash fund to $250.
Aug. 1
Established a petty cash fund with a $200 balance.
Aug. 31
The petty cash fund has $43 in cash and $154 in petty cash tickets there were issued to pay for Office Expense ($75) and Repair Expense ($79). Replenished the fund and recorded the expenditures.
Oct. 15
Increased the balance of the petty cash fund to $250.
Explanation / Answer
Answer:
Account titles Debit Credit Aug-01 By Petty cash 200 To Cash 200 (establish petty cash fund) Aug-31 By Office expenses 75 By Repair expenses 79 By Cash Short and Over 3 To Cash 157 (replenish petty cash fund) ($200 - $43) Oct-15 By Petty cash 50 To Cash 50 (Increase the petty cash balance to $200) ($250-$200)