At the end of the month, employees have made the following expenditures from the

Question

At the end of the month, employees have made the following expenditures from the petty cash fund and with company-issued credit cards. None of these transactions has been recorded previously.

Supplies (petty cash) = $50    

Delivery (petty cash) = $75    

Advertising (credit card) = $1,100      

Equipment (credit card) = $4,200

Accounting for these employee purchases would include a:

A) Credit to Petty Cash for $125.

B) Credit to Accounts Payable for $5,425.

C) Credit to Cash for $1 ,225.

D) Debit to Accounts Payable for $5,300

Explanation / Answer

Journal entry for given question is:

so answer will be: A) Credit to Petty Cash for $125.

Debit Supplies expense $        50 Debit Delivery expense $        75 Debit Advertising expense $ 1,100 Debit Equipment $ 4,200 Credit Petty cash ($50+$75) $     125 Credit Accounts payable ($1,100+$4,200) $ 5,300

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