PE 8-4B Petty cash fund

Prepare journal entries for each of the following:

a. Issued a check to establish a petty cash fund of $750.

b. The amount of cash in the petty cash fund is $325. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $300 and miscellaneous selling expense, $100. Record any missing funds in the cash short and over account.

Answer:

a.
Petty Cash............................................. 750  
          Cash .......................................................... 750

b.
Store Supplies ........................................ 300
Miscellaneous Selling Expense.......................... 100
Cash Short and Over............................................. 25  
          Cash ........................................................  425

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