Suppose that on June 1, Party Gyrations, a disc jockey service, creates a petty

Question

Suppose that on June 1, Party Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of $ 250. During June comma Ruth Mangan , fund custodian, signs the following petty cash tickets: LOADING... (Click the icon to view the petty cash tickets.) On June 30 , prior to replenishment, the fund contains these tickets plus cash of $ 94. The accounts affected by petty cash payments are Office Supplies, Entertainment Expense, and Postage Expense. Petty Cash Ticket Number Item Amount 1 Postage for package received $20 2 Office party 25 3 Two boxes of stationery 30 4 Printer cartridges 15 5 Business dinner 60 Requirement 1. On June 30 , how much cash should this petty cash fund hold before it's replenished? Before replenishment, the petty cash fund should hold cash of $ 100 . Requirement 2. Journalize all required entries to (a) create the fund and (b) replenish it. Include explanations. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Journalize the creation of the fund.

specially, I want to know how to get the cash and shor over.

Explanation / Answer

Answer

Expense tickets=$100

cash should have been there as the total expense was $150.

As there is $6 shortage, it is debited to Cash Over/Short account.

Date Particulars Dr Cr June 1 Petty Cash   250 Cash 250 ( creating petty cash fund) Postage for package received 20 Office party 25 Two boxes of stationery 30 Printer cartridges 15 Business dinner 60 Cash Over/Short 6 Petty Cash Expense 156 ( Expense recording) Petty Cash Expense 156 Cash 156 ( recording replenishment of cash)

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