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Havermill Co. establishes a $420 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $90 for Office Supplies, $171 for merchandise inventory, and $39 for miscellaneous expenses. The fund has a balance of $120. On October 1, the accountant determines that the fund should be increased by $84. The journal entry to record the establishment of the fund on September 1 is:
Debit Cash $420; credit Petty Cash $420
Debit Petty Cash $420; credit Accounts Payable $420.
Debit Miscellaneous Expense $420; credit Cash $420
Debit Petty Cash $420; credit Cash $420
Debit Cash $420; credit Accounts Payable $420.
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