Petty Cash Fund EntriesJournalize the entries to record the following:Check No. 12-375 is issued to establish a petty cash fund of $1,000.The amount of cash in the petty cash fund is now $370. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $365; miscellaneous selling expense, $151; miscellaneous administrative expense, $95. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)a. Journalize the entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank.b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank.

Petty cash book:- Petty Cash book is the book that records all the day to day petty cash (small and…

Answered: a. Journalize the entry to establish…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Petty Cash Fund Entries

Journalize the entries to record the following:

Check No. 12-375 is issued to establish a petty cash fund of $1,000.
The amount of cash in the petty cash fund is now $370. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $365; miscellaneous selling expense, $151; miscellaneous administrative expense, $95. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)

a. Journalize the entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank.

b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank.

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