Question

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. $60 25 Delivery charges paid on merchandise purchased Supplies purchased and used Postage expense I.O.U. from employees Miscellaneous expense 33 17 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 by $100 to $300 on April 20.

Answer 1

Date	Account Titles and Explanation	Debit	Credit
April 1	Petty cash	200
	cash		200
April 10	Freight In (or Inventory)	60
	Supplies expense	25
	Postage expense	33
	IOU from employees	17
	Miscellaneous expense	36
	Cash over and short	2
	Cash (200-27)		173
April 20	Petty cash (300-100)	$200
	Cash		$200