PE 8-4B Petty cash fund

Prepare journal entries for each of the following:

a. Issued a check to establish a petty cash fund of $900.
b. The amount of cash in the petty cash fund is $115. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $550 and miscellaneous selling expense, $200. Record any missing funds in the cash short and over account.


Answer:

a.
 Petty Cash 900
Cash 900
b.
 Store Supplies 550
Miscellaneous Selling Expense 200
Cash Short and Over 35
Cash 785