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