EX 8-24 Petty cash fund entries

Journalize the entries to record the following:

a. Check No. 6300 is issued to establish a petty cash fund of $1,200.

b. The amount of cash in the petty cash fund is now $200. Check No. 6527 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $650; miscellaneous selling expense, $230; miscellaneous administrative expense, $90. (Since the amount of the check to replenish the fund plus the balance in the fund do not equal $1,200, record the discrepancy in the cash short and over account.)

Answer:
a.

Petty Cash....................... 1,200  
Cash .............................................  1,200

b.
Office Supplies ...................... 650
Miscellaneous Selling Expense......... 230
Miscellaneous Administrative Expense .. 90
Cash Short and Over.................... 30  
Cash ...........................................................................  1,000

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