Question

A small company maintains a petty cash fund for minor expenditures. In June and July 2011, the following transactions took place:

1. The fund was established in the amount of $100.00 on June 1 from the proceeds of check no. 2707.
2. On June 30, the petty cash fund had cash of $15.46 and the following receipts on hand: postage, $40.00; supplies, $24.94; delivery service, $12.40; and rubberstamp, $7.20. Check no. 2778 was drawn to replenish the fund.
3. On July 31, the petty cash fund had cash of $22.06 and these receipts on hand: postage, $34.20; supplies, $32.84; and delivery service, $6.40. The petty cashcustodian could not account for the shortage. Check no. 2847 was drawn to replenish the fund.

Prepare entries in journal form necessary to record each transaction.


I know that the first one is
Debit: Petty Cash 100
Credit: Cash 100

Answer 1

A small company maintains a petty cash fund for minor expenditures. In June and July 2011, the following transactions took place:

1.     The fund was established in the amount of $100.00 on June 1 from the proceeds of check no. 2707

Debit: Petty Cash 100

Credit: Cash 100

2.     On June 30, the petty cash fund had cash of $15.46 and the following receipts on hand: postage, $40.00; supplies, $24.94; delivery service, $12.40; and rubber stamp, $7.20. Check no. 2778 was drawn to replenish the fund.

Debit: Postage expense 40.00

Debit: Supplies expense 24.94

Debit: Delivery expense 12.40

Debit: Miscellaneous Expense 7.20

Credit: Cash 84.54

3.     On July 31, the petty cash fund had cash of $22.06 and these receipts on hand: postage, $34.20; supplies, $32.84; and delivery service, $6.40. The petty cash custodian could not account for the shortage. Check no. 2847 was drawn to replenish the fund.

Debit: Postage expense 34.20

Debit: Supplies expense 32.84

Debit: Delivery expense 6.40

Debit: Cash over and short 4.50

Credit: Cash 77.94