Question

Exercise 7-22 Whispering, 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 $253. 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 $71 Supplies purchased and used 36 Postage expense 44 I.O.U. from employees 28 Miscellaneous expense 47 The petty cash fund was replenished on April 10. The balance in the fund was $17. 3. The petty cash fund balance was increased by $111 to $364 on April 20.

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

Answer 1

	JOURNAL ENTRIES
Date	ACCOUNT TITLES AND EXPLANATIONS	DEBIT ($)	CREDIT ($)
Apr-01	Petty cash	253.00
	Cash		253.00
Apr-10	Transportation in	71.00
	Miscellaneous expense	47.00
	Postage expense	44.00
	Supplies expense	36.00
	Receivables - employees	28.00
	Cash over and short	10.00
	Cash (253 - 17)		236.00
Apr-20	Petty cash	111.00
	Cash		111.00