Question

Exercise 7-22 Cullumber, 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 $268. 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 $76 Supplies purchased and used 41 Postage expense 49 I.O.U. from employees 33 Miscellaneous expense 52 The petty cash fund was replenished on April 10. The balance in the fund was $8. 3. The petty cash fund balance was increased by $116 to $384 on April 20. Prepare the journal entries to record transactions related to petty cash for the month of April. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Apr. 1	Petty cash	268
	Cash		268
Apr. 10	Freight-in	76
	Supplies expense	41
	Postage expense	49
	Loan to employees	33
	Miscellaneous expense	52
	Cash short and over	9
	Cash		260
Apr. 20	Petty cash	116
	Cash		116