Question

Prepare journal entries for each of the following (refer to the Chart of Accounts for exact wording of account titles):

	Instructions
A.	On March 1, issued a check to establish a petty cash fund of $745.
B.	On April 1, the amount of cash in the petty cash fund is $102. Issued a check to replenish the fund, based on the following summary of petty cash receipts: repair expense, $506, and miscellaneous selling expense, $86. Record any missing funds in the cash short and over account.
CHART OF ACCOUNTS
General Ledger
ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 591 Miscellaneous Administrative Expense 592 Miscellaneous Selling Expense 710 Interest Expense

A. On March 1, issued a check to establish a petty cash fund of $745. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

B. On April 1, the amount of cash in the petty cash fund is $102. Issued a check to replenish the fund, based on the following summary of petty cash receipts: repair expense, $506 and miscellaneous selling expense, $86. Record any missing funds in the cash short and over account. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

Answer 1

Solution:

Journal Entries
No.	Date	Account title	Debit	Credit
A	01-Mar	Petty Cash	$745
		Cash		$745
B	01-Apr	Repair Expenses	$506
		Miscellaneous selling expense	$86
		Cash Short and Over ($745- $506- $86 - $102)	$51
		Cash		$643