Question

The petty cash fund of $200 for Tomkins Company appeared as follows on December 31, 2014


Cash $50.60


Petty Cash Vouchers


Freight-in $58.40


Postage 40.00


Balloons for a special occasion 20.00


Meals 25.00


1. Prepare the general journal entry to replenish the fund.


2. On December 31, the office manager gives instructions to increase the petty cash fund by $50. Make the appropriate journal entry.

Answer 1

Answer:

Explanation:

1.

Petty Cash (200-50.6)  Dr.$149.4

Cash            Cr.$149.4

Freight In   Dr. $58.4

Postage      Dr.$40

Balloons Expense      Dr.$20

Meals Expense        Dr.$25

Cash                         Cr.$143.4  

2. Petty Cash  Dr.$50

   Bank/Cash   Cr.$50