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https://w ww.math l.com/Student/player ractice.aspx?closeUrl /Student/StudyPlanaspx%3Fchapt erid%3D8%26sld%3D7%26objectveld%3D. 18 Phuong Ngu 8 (Appendix 7A) Account for the petty cash fund S7A-2 (similar to) I comect 1 2 of 8 complete Record the following petty cash transactions of Recycle, Inc., in the journal, explanations are not required. Sep 1 30 Established a petty cash fund with a $200 balance. The petty cash fund had $14 in cash and $177 in petty cash tickets that were issued to pay for office suppies ($107) and entertainment expense ($70) Replenished the fund. Increased the petty cash fund balance to $310 30 Record the establishment of the petty cash fund. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Sep Debit Credit 1Petty cash 200 Cash 200 Record the replenishment of the fund Journal Entry Accounts Debit Credit Date your pointer over or tap on the red arows to see inco This question is complete. Move your All parts showing Oincortana. Ask me anything. m Cortana. Ask me anythingExplanation / Answer
September 1 Journal Entry has no calculations involved.
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September 30th Journal Entry 1: The petty cash had a balance of $14. Since, the fund is to be replenished to $200, it would mean that we need cash equivalent to a value of $186 (200 - 14). Out of this $186, the $177 will be adjusted towards office supplies ($107) and entertainment expenses ($70). The balance amount of $9 (186 - 177) will be adjusted as cash short and over.
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September 30th Journal Entry 2: Since, the petty cash fund balance has to be increased to $310, we will have to record an additional $ 110 (310 - 200) transfer to petty cash from the cash balance of the company.
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