Reference no: EM132203697
What would the journal entry look like? not sure how to word the entry? Petty cash debit for $250?
Alpha Company established a petter cash fund on July 1, 2017 by writing a cheque in the following amount of $500 and placing the proceeds into a strong box. The custodian, Mr. Faithfully Honest accepted the responsibility for the petty cash fund on that date.
7/2 Postage for immediate use $15
7/10 Office supplies for immediate use $50
7/11 Gasoline for company car $50
7/19 Fedex shipping to customer $45
7/29 Office machine repair $75
The amount of petty cash in the strong box on July 31st prior to reconciliation was $250. On July @31, the petter cash was reconciled and replenished by issuing a cheque to Mr. Honest. The following petty cash events occurred based on the receipts that Mr. Honest had in his strong box:
9/5 Postage for immediate use $25
9/12 Office supplies for immediate use $35
9/12 Gasoline for company car $50
9/25 office machine repair $55
926 New office adding machine $175
The amount of petty cash in the strong box on September 30th prior to reconciliation was $170. On September 30th, the pettey cash was reconciled and replenished by issying a cheque to Mr. Honest to include an amount that increase the authorized balance of the petty cash fund to a total of $600.
a. July 1 - establishment of the Petty Cash fund---petty cash 500 to bank 500 b. July 31 - replenishment ---petty cash 250 to bank 250 c. September 30 - replenishment & increase funding for Petty Cash- petty cash 270 to bank 270