Clooney Corp. establishes a petty cash fund for $200 and issues a credit card to its office manager. By the end of the month, employees made one expenditure from the petty cash fund (entertainment, $25) and three expenditures with the credit card (postage, $44; delivery, $69; supplies expense, $34). Separately record employee credit card expenditures and employee petty cash expenditures. The credit card balance will be paid later

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Business

Casey Mann

31 December, 09:10

Clooney Corp. establishes a petty cash fund for $200 and issues a credit card to its office manager. By the end of the month, employees made one expenditure from the petty cash fund (entertainment, $25) and three expenditures with the credit card (postage, $44; delivery, $69; supplies expense, $34). Separately record employee credit card expenditures and employee petty cash expenditures. The credit card balance will be paid later

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Carmen Hudson · Answer 1

Clooney Corp.

Petty Cash Journal Entry

Sr. No Particulars Debit Credit

1 Petty Cash $200

Cash $200

Establishing Petty Cash

2. (Employee Name; s) Entertainment Expenses $25 Dr

Petty Cash $ 25 Cr

Recording employee petty cash expenditures

Credit Card Expenditures Entries

1. Postage, $44; Dr

Delivery, $69; Dr

Supplies expense, $34 Dr

Credit Card Payable 147 Cr

Credit Card Payable is a liability and appears in the balance sheet. It has to be paid in the future.

2. Credit Card Payable 147 Dr.

Cash 147 Cr

When the liability is paid this entry is made.