Question

A company establishes a petty cash fund for $470. By the end of the month, employees had made the following expenditures from the fund: supplies, $139; fuel for deliveries, $123; postage, $76; miscellaneous, $40. Record the entry to recognize expenditures from the petty cash fund.

Answer 1

Answer:

A petty cash fund is created by debiting the petty cash account and credited to the cash account

The expenses made is debited to the respective expenses account and then credited to the cash account

Explanation:

petty cash = $470

Expenditures made by employees :

supplies = $139

Fuel for deliveries = $123

postage = $76

Miscellaneous = $40

NOTE : A petty cash fund is created by debiting the petty cash account and credited to the cash account

The expenses made is debited to the respective expenses account and then credited to the cash account

ATTACHED IS THE JOURNAL ENTRY