Date Account Titles and Explanation Debit Credit July 1 July 15 July 31 Aug. 15

Question

Date

Account Titles and Explanation

Debit

Credit

July 1

July 15

July 31

Aug. 15

Aug. 16

Aug. 31

Petty Cash

Date

Explanation

Ref

Debit

Credit

Balance

CP

CP

Forney Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.
July 1 Established petty cash fund by writing a check on Scranton Bank for $200.00. 15 Replenished the petty cash fund by writing a check for $196.50. On this date the fund consisted of $3.50 in cash and the following petty cash receipts: freight-out $95.00, postage expense $42.80, entertainment expense $48.50, and miscellaneous expense $8.23. 31 Replenished the petty cash fund by writing a check for $191.40. At this date, the fund consisted of $8.60 in cash and the following petty cash receipts: freight-out $81.60, charitable contributions expense $45.20, postage expense $38.20, and miscellaneous expense $26.40. Aug. 15 Replenished the petty cash fund by writing a check for $185.80. On this date, the fund consisted of $14.20 in cash and the following petty cash receipts: freight-out $76.30, entertainment expense $42.70, postage expense $32.20, and miscellaneous expense $36.00. 16 Increased the amount of the petty cash fund to $300.00 by writing a check for $100.00. 31 Replenished the petty cash fund by writing a check for $284.20. On this date, the fund consisted of $15.80 in cash and the following petty cash receipts: postage expense $141.70, travel expense $93.50, and freight-out $47.60.

Explanation / Answer

Journal entries

petty cash

Date Description Debit Credit July 1 Petty cash $200 To Cash $200 July 15 Freight out $95 Postage expense $42.80 Entertainemnt expense $48.50 Miscellaneous expense    8.23 Cash over and short    1.97 To Petty Cash $196.50 July 31 Freight out $81.60 Charitable contribution expense $45.20 Postage exepense $38.20 Miscellaneous expense $26.40 To Petty cash $191.40 Aug 13 Frieght out $76.30 Entertainment expense $42.70 Postage expense $32.20 Miscellneous expense $36.00 To Petty cash $185.60 To cash over and short       1.60 Aug 16 Petty cash $100 To cah $100 Aug 31 Postage expense $141.70 Travel expense $93.50 Freight out $47.60 Cash over and short     1.40 To Petty cash $284.20

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