Question

Swifty, 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 $264. 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 $75 Supplies purchased and used Postage expense 1.O.U. from employees Miscellaneous expense The petty cash fund was replenished on April 10. The balance in the fund was $15. 3. The petty cash fund balance was increased $115 to $379 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 O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

6.7.0

Answer 1

Answer
Date	Explanation	Debit	Credit
Apr-01	Petty cash	$     264
	Cash		$     264
Apr-10	Freight-in (Or Inventory)	$       75
	Supplies expense	$       40
	Postage expense	$       48
	Accounts Receivable/Loan to employees	$       32
	Miscellaneous expense	$       51
	Cash over and short	$         3		264-(75+40+48+32+51)
	Cash		$     249	264-15
Apr-20	Petty cash	$     115
	Cash		$     115