Petty Cash Fund EntriesJournalize the entries to record the following:Check is issued to establish a petty cash fund of $1,500.The amount of cash in the petty cash fund is now $495. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $583; miscellaneous selling expense, $241; miscellaneous administrative expense, $151. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,500, record the discrepancy in the cash short and over account.)a. Journalize the entry to establish the petty cash fund. 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 fund: Petty cash fund is a fund established to pay insignificant amounts like postage,…

Answered: Petty Cash Fund Entries Journalize the…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 7.4BE

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Petty Cash Fund Entries

Journalize the entries to record the following:

Check is issued to establish a petty cash fund of $1,500.
The amount of cash in the petty cash fund is now $495. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $583; miscellaneous selling expense, $241; miscellaneous administrative expense, $151. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,500, record the discrepancy in the cash short and over account.)

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

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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