Journalize the entries to record the following:Check is issued to establish a petty cash fund of $750.The amount of cash in the petty cash fund is now $176. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $248; miscellaneous selling expense, $212; miscellaneous administrative expense, $96. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $750, record the discrepancy in the cash short and over account.)a. Journalize the entry to establish the petty cash fund. Petty Cash Cash Feedback a. Recall that the only time Petty Cash is used is when the fund is initially established or increased.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. Office Supplies Miscellaneous Selling Expense Miscellaneous Administrative Expense Cash Short and Over Cash

Requirement a: Journal entry to create the petty cash fund:

Answered: a. Journalize the entry to establish…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 1PB: On June 1 French company has decided to initiate a petty cash fund in the amount of $800. Prepare...

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Journalize the entries to record the following:

Check is issued to establish a petty cash fund of $750.
The amount of cash in the petty cash fund is now $176. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $248; miscellaneous selling expense, $212; miscellaneous administrative expense, $96. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $750, record the discrepancy in the cash short and over account.)

a. Journalize the entry to establish the petty cash fund.

	Petty Cash
	Cash

Feedback

a. Recall that the only time Petty Cash is used is when the fund is initially established or increased.

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.

	Office Supplies
	Miscellaneous Selling Expense
	Miscellaneous Administrative Expense
	Cash Short and Over
	Cash

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