Question

Exercise 7-8 Splish Brothers Inc. uses an imprest petty cash system. The fund was established on March 1 with a balance of $100. During March, the following petty cash receipts were found in the cash Date Receipt No For Amount 3/5 Stamp Inventory Freight-Out Miscellaneous Expense Travel Expense Miscellaneous Expense The fund was replenished on March 15 when the fund contained $6 in cash. On March 20, the amount in the fund was increased to $210. Journalize the entries in March that pertain to the operation of the petty cash fund. (Credit account titles are automatically indented when amount is entered. De not indent manually a lantes in the order presented in the problem.) B

Answer 1

Answer:

Petty cash Journal Entries:
Date	Accounts	Debit($)	Credit($)
3./1	Petty cash	100
	Cash		100
	(To record Petty cash fund established)
3./5	Stamp Inventory	35
	Petty cash		35
	(Being expense paid)
3./7	Freight Out	13
	Petty cash		13
	(Being expense paid)
3./9	Miscellaneous Expense	14
	Petty cash		14
	(Being expense paid)
3./11	Travel Expense	20
	Petty cash		20
	(Being expense paid)
3./14	Miscellaneous Expense	9
	Petty cash		9
	(Being expense paid)
3./15	Petty cash	91
	Cash Over/ Short	3
	Cash		94
	(Being fund replenished)
3./20	Petty cash	110
	Cash		110
	(Being fund increased by $110)