Question

Clooney Corp. establishes a petty cash fund for $225 and issues a credit card to its office manager. By the end of the month, employees made one expenditure from the petty cash fund (entertainment, $15) and three expenditures with the credit card (postage, $55; delivery, $80; supplies expense, $45).

Record all employee expenditures, and record the entry to replenish the petty cash fund. The credit card balance will be paid later.

Answer 1

Explanation:

The journal entries are shown below:

Entertainment Expenses A/c Dr $15

Postage expenses A/c Dr $55

Delivery expenses A/c $80

Supplies Expenses A/c $45

             To Credit Card payable A/c $180

             To Petty cash A/c $15

(Being all employee expenditures are recorded)

Petty cash A/c Dr $15

    To Cash A/c $15

(Being the replenish of the petty cash fund is recorded)