Question

Oriole Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug. 1 Established the petty cash fund by writing a check payable to the petty cash custodian for $210.00. 15 Replenished the petty cash fund by writing a check. On this date, the fund consisted of $3.20 in cash and these petty cash receipts: freight-out $74.60, entertainment expense $35.50, postage expense $33.00, and miscellaneous expense $62.40. 16 Increased the amount of the petty cash fund to $490.00 by writing a check for $280.00. 31 Replenished the petty cash fund by writing a check. On this date, the fund consisted of $118 in cash and these petty cash receipts: postage expense $139.00, entertainment expense $93.00, and freight-out $138.00. Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Aug. 15 Aug. 31 e Textbook and Media List of Accounts

Answer 1

Answer :-

Journalize the Pretty cash transactions :-

Date	Account Titles and Explanation	Debit	Credit
Aug. 1	Petty Cash A/c	$210.00
	To Cash		$210.00
Aug. 15	Freight Out A/c	$74.60
	Entertainment Expenses A/c	$35.50
	Postage Expense A/c	$33.00
	Miscellaneous expense A/c	$62.40
	Cash Short & Over A/c	$1.3
	To Cash A/c		$206.80
	(For Explaination of cash and cash short see note 1)
Aug. 16	Petty Cash A/c	$280.00
	To Cash A/c		$280.00
Aug. 31	Postage Expense	$139.00
	Entertainment Expense	$93.00
	Freight out	$138.00
	Cash Short & Over	$2.00
	To Cash A/c		$372.00
	(For Explaination please see note -2)

Note 1 :-

Pretty Cash Fund = $210.00

Less - Fund Consists cash = $3.20

Cash Balance = $206.80

Now we find Cash short & over -

Cash Balance	$206.80
Less :-
Freight Out	$74.60
Entertainment Expenses	$35.50
Postage Expense	$33.00
Miscellaneous expense	$62.40
Cash Short & Over	$1.3

Note 2:-

Pretty Cash Fund = $490.00

Less - Fund Consists cash = $118

Cash Balance = $372

Now we find Cash short & over -

Cash Balance	$372.00
Less :-
Freight Out	$138.00
Entertainment Expenses	$93.00
Postage Expense	$139.00
Cash Short & Over	$2

Post to the Pretty Cash Account :-

Date	Particular	Debit	Date	Particular	Credit
Aug 1	To cash	$210.00
Aug 16	To Cash	$280.00
Aug 31	Balance	$490.00