A company established a petty cash fund in May of the current year and experienc

Question

A company established a petty cash fund in May of the current year and experienced the following transactions affecting the fund during May: MaY 1 Establish petty cash account in the amount of $300. maY 5 Paid for miscellaneous office supplies in the amount of $53.22. May 9 Reimbursed human resource manager for business lunch, $45.09. May 15 Paid for minor landscaping services, $75. May 22 Paid $65.00 for postage. May 31 Counted remaining cash and discovered that $56.34 remained. prepare the journal entry to lot May 1 and May 31 reimburse the fund.

Explanation / Answer

May-1

Petty cash Account DR $300

To Cash/Bank $300

Being imprest amount released for petty expenses)

May-31

Miscellaneous office expenses account DR $53.22

Business lunch expenses account DR $45.09

Landscapping service charge account DR $75

Postage charges account DR $65

Cash shortage DR $5.35

To Petty cash account $300

(Being replinish petty cash fund)

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