Question

tor employees. Learning Objective 4 E7-17 Accounting for petty cash Jackie's Dance Studio created a $220 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: 2. Cash Short & Over $15 Amount $ 20 N- Petty Cash Ticket No. Item Account Debited Delivery of programs to customers Delivery Expense Mail package Postage Expense Newsletter Printing Expense Key to closet Miscellaneous Expense Copier paper Office Supplies 25 w u Requirements 1. Make the general journal entry to create the petty cash fund. Include an explanation. 2. Make the general journal entry to record the petty cash fund replenishment. Cash in the fund totals $40. Include an explanation. 3. Assume that Jackie's Dance Studio decides to decrease the petty cash fund to $120. Make the general journal entry to record this decrease.

Please explain your answer. Thank you.

Answer 1

Pao Answoro ① General Entry to create the petty cash fand o Debito edit (6) -- $ 230 General Journal petty cash To cachmann cash short on petty cash Polo 2 220 fund = Total expenses + cashin-the fund -actual petty cash Established *20+10+25 +00440) + 40–226 = $ 205-220 = $(15) Debit ($] Creditos ) $10 Journal entry General Journal Delivery expense. pois lage expense Printing expense miscellaneous Expense office supplies cash short and over TO Cash $25 $180

general Entries General Tournal marine tran saction cash To petly cash (220-120)=100 creditch) Debi ch $100 $100