During October, Crane Company experiences the following transactions in establishing a petty cash fund.

Oct. 1 A petty cash fund is established with a check for $146.00 issued to the petty cash custodian.

Oct. 31 A check was written to reimburse the fund and increase the fund to $196.00.

A count of the petty cash fund disclosed the following items:

Currency $59.00

Coins 2.07

Expenditure receipts (vouchers):

Supplies $24.73

Miscellaneous items 15.03

Postage 38.33

Freight-Out 5.43

Journalize the entries in october that pertain to the petty cash fund.

Question

Business

Sienna Frank

25 July, 07:31

During October, Crane Company experiences the following transactions in establishing a petty cash fund.

Oct. 1 A petty cash fund is established with a check for $146.00 issued to the petty cash custodian.

Oct. 31 A check was written to reimburse the fund and increase the fund to $196.00.

A count of the petty cash fund disclosed the following items:

Currency $59.00

Coins 2.07

Expenditure receipts (vouchers):

Supplies $24.73

Miscellaneous items 15.03

Postage 38.33

Freight-Out 5.43

Journalize the entries in october that pertain to the petty cash fund.

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Answers (1)

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Greta Koch · Answer 1

The journal entries are shown below:

1. Petty cash A/c $146

To Cash A/c $146

(Being the petty cash fund is established)

2. Office supplies A/c Dr $4.73

Miscellaneous items $15.03

Postage $38.33

Freight-Out $5.43

Cash short and over A/c $21.41 (Balancing figure)

Petty cash A/c $50 ($196 - $146)

To Cash $134.93 ($196 - $59 - $2.07)

(Being the expenses are recorded)