The petty cash fund of $200 for Ginther Company appeared as follows on December 31, 2014: Cash $61.60Petty cash vouchers Freight in $27.40 Postage 45.00 Balloons for a special occasion 63.00 InstructionsBriefly describe when the petty cash fund should be replenished. Because there is cash on hand, is there a need to replenish the fund at year end on December 31? Explain. (2 marks)Prepare in general journal form the entry to replenish the fund. (3 marks)On December 31, the office manager gives instructions to increase the petty cash fund by $50. Make the appropriate journal entry. (2 marks)

Here we can find cash shortage in petty cash ,so it needs to replenished

Answered: The petty cash fund of $200 for Ginther…

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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Question

The petty cash fund of $200 for Ginther Company appeared as follows on December 31, 2014:

Cash $61.60

Petty cash vouchers

Freight in $27.40

Postage 45.00

Balloons for a special occasion 63.00

Instructions

Briefly describe when the petty cash fund should be replenished. Because there is cash on hand, is there a need to replenish the fund at year end on December 31? Explain. (2 marks)
Prepare in general journal form the entry to replenish the fund. (3 marks)
On December 31, the office manager gives instructions to increase the petty cash fund by $50. Make the appropriate journal entry. (2 marks)

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