Question

Louise's Dance Studio created a $300 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: (Click the icon to view the petty cash tickets.) Read the reguirements Make the general joumal entry to create the petty cash fund. Include an explanation. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Requirement Credit Date Accounts and Explanation Debit Data Table Petty Cash Ticket No. Item Account Deblted Amount $ 1 Delivery of programs Delivery Expense 15 Requirement 2. Make the general joumal entry to record the petty cash fund replenishment. Cash in the fund totals $119. Include an explanation. (Recordo Prepare a single compound joumal entry.) to customers Mail package 2 Postage Expense 10 Credit Date Accounts and Explanation Debit 3 Newsletter Printing Expense 20 Miscellaneous Expense 4 Key to closet 45 Copier paper Office Supplies 5 80 Print Done

Answer 1

The required journal entries for the given transactions are shown as follows:-

Journal Entries (Amounts in $)

Date	Accounts and Explanations	Debit	Credit
1	Petty Cash	300
	Cash		300
	(To record the petty cash fund created)
2	Delivery Expense	15
	Postage Expense	10
	Printing Expense	20
	Miscellaneous Expense	45
	Office Supplies	80
	Cash Over and Short (bal fig) (181-15-10-20-45-80)	11
	Cash (300-$119 balance)		181
	(To record the replenishment of petty cash fund)
3	Cash (300-170)	130
	Petty Cash		130
	(To record the decrease in petty cash fund)

Working Notes:-

a) Cash over and short is debited by the difference between cash used from the fund and total expenses paid in cash [i.e. $181-(15+10+20+45+80)]