Question

During October, Crane Company experiences the following transactions in establishing a petty cash fund.

Oct. 1 A petty cash fund is established with a check for $146.00 issued to the petty cash custodian.
Oct. 31 A check was written to reimburse the fund and increase the fund to $196.00.

A count of the petty cash fund disclosed the following items:
Currency $59.00
Coins 2.07
Expenditure receipts (vouchers):
Supplies $24.73
Miscellaneous items 15.03
Postage 38.33
Freight-Out 5.43

Journalize the entries in october that pertain to the petty cash fund.

Answer 1

Explanation:

The journal entries are shown below:

1. Petty cash A/c $146

            To Cash A/c $146

(Being the petty cash fund is established)

2. Office supplies A/c Dr $4.73

Miscellaneous items $15.03

Postage $38.33

Freight-Out $5.43

Cash short and over A/c $21.41      (Balancing figure)

Petty cash A/c $50         ($196 - $146)

             To Cash $134.93    ($196 - $59 - $2.07)

(Being the expenses are recorded)