Pharoah Company established a petty cash fund on May 1, cashing a check for $100

Question

Pharoah Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results. Sune 1: Cash in fund $2.80. Receipts: delivery expense $31.15, postage expense $38.10, and miscellaneous expense $25.40. July 1: Cash in fund $5.25. Receipts: delivery expense $23.30, entertainment expense $52.00, and miscellaneous expense $19.45 On July 10, Pharoah increased the fund from $100 to $130. Prepare journal entries for Pharoah Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 52.75.) Date Aocount Titles and Explanation Debit Credit June 1 July 1

Explanation / Answer

Journal entries Date Accounts title and explanations Debit $ Credit $ 1-May Petty cash Dr. 100    Cash Account 100 (for establishing petty cash fund) 1-Jun Delivery expense Dr. 31.15 Postage expense Dr. 38.1 Misc Expense Dr. 25.4 Short/Surplus Dr 2.55        Cash Account 97.2 (for replenishmennt of funds) 1-Jul Delivery expense Dr. 23.3 Establishment expense Dr. 52 Misc. expense Dr. 19.45        Cash Account 94.75 (for replinishment of funds) 10-Jul Petty cash Dr. 30      Cash Account 30 (for increasing the funds)

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