Cullumber Company maintains a petty cash fund for small expenditures. These tran

Question

Cullumber Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.

Aug.  1 Established the petty cash fund by writing a check payable to the petty cash custodian for $206.00. 15 Replenished the petty cash fund by writing a check for $178.00. On this date, the fund consisted of $28.00 in cash and these petty cash receipts: freight-out $71.40, entertainment expense $33.00, postage expense $30.70 and miscellaneous expense $40.70. 16 Increased the amount of the petty cash fund to $406.00 by writing a check for $200.00. 31 Replenished the petty cash fund by writing a check for $286.00. On this date, the fund consisted of $120.00 in cash and these petty cash receipts: postage expense $142.00, entertainment expense $99.60, and freight-out $43.40.

How would these be journalized, thanks

Explanation / Answer

Date Account Titles and Explanation Debit Credit 1-Aug Petty Cash $206.00 Cash $206.00 (To establish petty cash) 15-Aug Cash Over and Short $2.20 Freight-out $71.40 Entertainment Expense $33.00 Postage Expense $30.70 Miscellaneous Expense $40.70 Cash $178.00 (To record petty expenses) 16-Aug Petty Cash $200.00 Cash $200.00 (To replenish petty cash) 31-Aug Cash Over and Short $1.00 Postage Expense $142.00 Entertainment Expense $99.60 Freight-out $43.40 Cash $286.00 (To record petty expenses)

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