A company established a petty cash fund in April of the current year and experie

Question

A company established a petty cash fund in April of the current year and experienced the following transactions affecting the fund during April. Prepare journal entries to establish the fund on April 1, to replenish it on April 25, and to record the increase in the fund on April 25.

April 1Prepared a company check for $300.00 to establish the petty cash fund. 25 Prepared a company check to replenish the fund for the following expenditures made since April 1. Paid $84.50 for cleaning services. Paid $84.00 for postage expense. Paid $103.15 for office supplies. Counted $23.35 remaining in the petty cash box. 25 The company decides to increase the fund by $100

Explanation / Answer

SOLUTION:

PART-1 Apr-01 Petty cash 300 Cash 300 Apr-25 Miscellaneous expense 84.50 Postage expenses 84.00 Office supplies expense 103.15 Cash over and short 5.00 Cash 276.65 Apr-25 Petty cash 100 Cash 100

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