PE 8-4A Petty cash fund

Prepare journal entries for each of the following:

a. Issued a check to establish a petty cash fund of $800.

b. The amount of cash in the petty cash fund is $225. Issued a check to replenish the fund, based on the following summary of petty cash receipts: repair expense, $450 and miscellaneous selling expense, $75. Record any missing funds in the cash short and over account.

Answer:

a.
Petty Cash........................................... 800  
           Cash ...............................................  800

b.
Repairs Expense...................................... 450
Miscellaneous Selling Expense........................ 75
Cash Short and Over.................................. 50  
           Cash ...............................................  575

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