Question

Petty Cash Record and Journal Entries On May 1, a petty cash fund was established for $137.50. The following vouchers were issued during May: Date Voucher No. Amount $ 3.40 13.00 5 3 auto repair (miscellaneous) 40.00 23.00 8.00 24.00 3.10 4.00 18.00 Purpose May 1 1 postage due 3 2 office supplies 7 4 drawing (Joy Adams) 11 5 donation (Red Cross) 15 6 travel expenses 22 7 postage stamps 26 8 phone call 30 9 donation (Boy Scouts)
Required:
1. Prepare the journal entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank. .
2. Record the vouchers in the petty cash record. Total each column to determine the balance before replenishing the petty cash fund. When equired, enter amounts in dollars and cents
3. Prepare the journal entry to replenish the petty cash fund. Then record the amount in the petty cash record in part 2. If an amount box does not ire an entry, leave it blank.

Answer 1

Answer:

1. Dr Petty cash $137.50

Cr Cash $137.50

2. Dr Postage due $ 3.40

Dr Office supplies $13.00

Dr Auto repair (miscellaneous) $40.00

Dr Drawing (Joy Adams) $23.00

Dr Donation (Red Cross) $8.00

Dr Travel expenses $24.00

Dr Postage stamps $3.10

Dr Phone call $4.00

Dr Donation (Boy Scouts) 18.00

Cr Cash $136.50(

3. Dr Petty cash $1.00

Cr Cash $1.00

Explanation:

1. Preparation of the journal entry to establish the petty cash fund.

Dr Petty cash $137.50

Cr Cash $137.50

(Being to establish the petty cash fund)

2. Preparation of the journal entry to Record the vouchers in the petty cash record. .

Dr Postage due $ 3.40

Dr Office supplies $13.00

Dr Auto repair (miscellaneous) $40.00

Dr Drawing (Joy Adams) $23.00

Dr Donation (Red Cross) $8.00

Dr Travel expenses $24.00

Dr Postage stamps $3.10

Dr Phone call $4.00

Dr Donation (Boy Scouts) 18.00

Cr Cash $136.50

($3.40+$13+$40+$23+$8+$24+$3.10+$4+$18)

(Being to Record the vouchers in the petty cash record)

3. Preparation of the journal entry to replenish the petty cash fund.

Dr Petty cash $1.00

Cr Cash $1.00

($137.50-$136.50)

(Being to replenish the petty cash fund)