Assume a company has $250 in its petty cash fund. It expends $175 as follows: $100 for delivery expenses, $40 for postage, $35 for office supplies. There is $75 of cash remaining in the fund after these disbursements. The journal entry to replenish the petty cash fund includes:

A credit to Office Supplies expense for $35A credit to Cash for $175A credit to Cash for $250

Question

Business

Emiliano

1 December, 15:08

Assume a company has $250 in its petty cash fund. It expends $175 as follows: $100 for delivery expenses, $40 for postage, $35 for office supplies. There is $75 of cash remaining in the fund after these disbursements. The journal entry to replenish the petty cash fund includes:

A credit to Office Supplies expense for $35A credit to Cash for $175A credit to Cash for $250

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Answers (1)

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Arthur Marks · Answer 1

A credit to Cash for $175

Explanation:

Suplies expense 35

delivery expenses 100

miscellaneuos expense 40

cash 175

The petty cash will receive 175 cash to restore their original value of 250

And the company will recognize the proper expenses.

The petty cash account is only used when creating, increasing or decreasing their founds.