Question

1. Brooks Agency set up a petty cash fund for $140. At the end of the current period, the fund contained $37 and had the following receipts: entertainment, $48; postage, $28; and printing, $27. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.

Answer 1

amount Petty cash fund us a small amount of cash Kept on hand to pay for minor (small) Expenses and to reimburse the expensed after a certain period Time. 1a. Record of the establishment of the petty cash fund. Dete Accounts of quale Debit credit Petty cash xx x $ 140 cash $ 140 e to open petty cash fund) at the end 16) Reimbursement of the fund current periodo of 영 Title credit Accounts od Entertainment Postage Debit $48 xxx $ 28 Printing $27 Cash $103 (To reimburse petty cash fund) th Note: 37 - 37 = 0 over or shoot. 140 48- 28-27 o 140- 31(cash Lyft in petty cash fund) = $103 To reimburse.