Question

on september 1,2017 watkins compan

Chapter 7 On September 1, 2017, Watkins Company set up a petty cash fund by cashing a check at the bank for $250. On September 30, 2017, the company employee responsible for maintain petty cash receipts and disbursements submitted the following receipts for replenishment of the petty cash fund. At the time of submitting the receipt there was $36.10 cash in the fund: Misc. equipment repair $24.50 Office Supplies Expense $45.25 Entertainment of Client $51.75 Postage Expense $30.00 Fedx Overnight Shipping Fee $59.00 Instructions Prepare the following journal entries: 1. Establish the petty cash fund on September 14. 2. The replenishment of the fund on September 30.

Answer 1

Solution:

Journal Entries
Date	Particulars	Debit	Credit
1-Sep	Petty Cash Dr	$250.00
	To Cash		$250.00
	(To establish petty cash fund)
30-Sep	Repair and maintenance Dr	$24.50
	Supplies expense Dr	$45.25
	Entertainment expense Dr	$51.75
	Postage expense Dr	$30.00
	Shipping expense Dr	$59.00
	Cash over and short Dr	$3.40
	To Cash		$213.90
	(To replenish the petty cash fund)