Debit/credit question AE8-8 Rashida Company uses an imprest petty cash system. T

Question

Debit/credit question
AE8-8
Rashida Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $131. During March the following petty cash receipts were found in the petty cash box.



Date


Receipt
No.


For


Amount
3/5 1 Stamp inventory $43
3/7 2 Freight-out 25
3/9 3 Miscellaneous Expense 7
3/11 4 Travel Expense 35
3/14 5 Miscellaneous Expense 8

The fund was replenished on March 15 when the fund contained $7 in cash. On March 20, the amount in the fund was increased to $194.

Instructions

Journalize the entries in March that pertain to the operation of the petty cash fund. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)

Date Description Debit Credit
Mar. 1

Mar. 15





Mar. 20

Explanation / Answer

DR Petty Cash 131 CR Cash 131 DR Postage expense 43 DR Travel expense 35 DR Freight out 25 DR Misc expense 15 DR Cash over/short 6 CR Petty cash 124 DR Petty cash 124 CR Cash 124 DR Petty Cash 63 CR Cash 63

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