91Ó°ÊÓ

(Petty Cash) Carolyn Keene, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.

1. On April 1, it established a petty cash fund in the amount of \(200.

2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows

Delivery charges paid on merchandise purchased	\)60
Supplies Purchased and used	25
Postage expenses	33
I.O.U from employees	17
Miscellaneous expenses	36

The petty cash fund was replenished on April 10. The balance in the fund was \(27.

3. The petty cash fund balance was increased \)100 to $300 on April 20.

Instructions

Prepare the journal entries to record transactions related to petty cash for the month of April

Step by step solution

01

Definition of Miscellaneous Expenses

A ledger account that reports all the minor expenses made by the business entity is known as a miscellaneous expense.

02

Journal Entries

Date	Accounts and Explanation	Debit $	Credit $
April 1	Petty cash	$200
	Cash		$200
April 10	Delivery charges	$60
	Supplies expenses	$25
	Postage expenses	$33
	I.O.U from employees	$17
	Miscellaneous expenses	$36
	Cash over and short	$2
	Cash$\left(\$200-\$27\right)$		$173
April 20	Petty cash	$100
	Cash		$100

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