2. The Stripe Corporation had the following petty cash transactions during the m

Question

2. The Stripe Corporation had the following petty cash transactions during the month of uly July 1: Established the petty cash fund in the amount of $800. July 11: The fund was replenished. An analysis of the contents of the fund showed $422 Petty cash vouchers for: Office supplies...... $.75 July 23: COD charges of $42 for delivery charges were paid out of the petty cash fund July 31: The petty cash fund had a balance of $758 and it was not replenished. The company prepares monthly financial statements. Prepare the necessary journal entries to account for the above

Explanation / Answer

Account Debit Credit Petty cash 800 Cash 800 [Established petty cash fund] Petty cash 378 Cash 378 [Replenished fund, amount = 800-422=378] Office supplies 75 Stamps 66 Employee expense- candy 30 Employees IOU                  200 Misc expenses                       7 [balance amount] Petty cash                  378 [Expenses recorded] Delivery expnese                    42 Petty cash                    42 [Petty cash expense recorded]

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