Studdy AI Logo
Math

QuestionPetty Cash Fund Journalize the necessary entries for each of the following: a. Issued a check to establish a petty cash fund of $450\$ 450. If an amount box does not require an entry, leave it blank. □\square □\square □\square □\square □\square □\square b. The amount of cash in the petty cash fund is $140\$ 140. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $180\$ 180 and miscellaneous selling expense, $115\$ 115. Record any missing funds in the cash short and over account. If an amount box does not require an entry, leave it blank. □\square □\square □\square □\square □\square □\square □\square □\square □\square □\square □\square □\square

Studdy Solution

STEP 1

1. The petty cash fund is established and replenished using checks.
2. The petty cash fund is used for small, miscellaneous expenses.
3. Any discrepancies in the fund are recorded in the cash short and over account.

STEP 2

1. Journalize the entry to establish the petty cash fund.
2. Calculate the amount needed to replenish the petty cash fund.
3. Journalize the entry to replenish the petty cash fund, including any discrepancies.

STEP 3

Journalize the entry to establish the petty cash fund:
- Debit the Petty Cash account to increase it. - Credit the Cash account to decrease it.
Account TitleDebitCreditPetty Cash$450Cash$450\begin{array}{|c|c|c|} \hline \text{Account Title} & \text{Debit} & \text{Credit} \\ \hline \text{Petty Cash} & \$450 & \\ \hline \text{Cash} & & \$450 \\ \hline \end{array}

STEP 4

Calculate the amount needed to replenish the petty cash fund:
- Total petty cash fund: \$450 - Cash remaining: \$140 - Amount spent: \$450 - \$140 = \$310

STEP 5

Journalize the entry to replenish the petty cash fund:
- Debit the Store Supplies account for \$180. - Debit the Miscellaneous Selling Expense account for \$115. - Calculate and debit the Cash Short and Over account for any discrepancy. - Credit the Cash account for the total amount needed to replenish the fund.
Calculate the discrepancy:
- Total expenses recorded: \$180 + \$115 = \$295 - Amount spent: \$310 - Discrepancy: \$310 - \$295 = \$15
Account TitleDebitCreditStore Supplies$180Miscellaneous Selling Expense$115Cash Short and Over$15Cash$310\begin{array}{|c|c|c|} \hline \text{Account Title} & \text{Debit} & \text{Credit} \\ \hline \text{Store Supplies} & \$180 & \\ \hline \text{Miscellaneous Selling Expense} & \$115 & \\ \hline \text{Cash Short and Over} & \$15 & \\ \hline \text{Cash} & & \$310 \\ \hline \end{array}

Was this helpful?

Studdy solves anything!

banner

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

ParentsInfluencer programContactPolicyTerms
TwitterInstagramFacebookTikTokDiscord