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21 October, 19:54

Prepare journal entries for each of the following

(A) On March 1, issued a check to establish a petty cash fund of $1,000.

(B) On April 1, the amount of cash in the petty cash fund is $315. Issued a check to replenish the fund, based on the following summary of petty cash receipts: repair expense, $600, and miscellaneous selling expense, $56. Record any missing funds in the cash short and over account.

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  1. 21 October, 23:06
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    The Journal entries are as follows:

    (a) On March 1,

    Petty cash A/c Dr. $1,000

    To cash $1,000

    (To record petty cash fund)

    (b) On April 1,

    Repairs Expense A/c Dr. $600

    Miscellaneous Selling Expense A/c Dr. $56

    To Cash Short and Over $29

    To cash $685

    (To record cash short and over account.)

    Notes:

    Cash Short and Over = 1000 - (600 + 56 + 315)

    = $29
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