Setterstrom Company established a petty cash fund on May 1, cashing a check for

Question

Setterstrom Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results.

On July 10, Setterstrom increased the fund from $100 to $130.

Prepare journal entries for Setterstrom Company

June 1: Cash in fund $2.50. Receipts: delivery expense $26.25, postage expense $36.25, and miscellaneous expense $33.00. July 1: Cash in fund $3.00. Receipts: delivery expense $18.75, entertainment expense $46.25, and miscellaneous expense $32.00.

Explanation / Answer

Date

Account title and explanation

Debit

Credit

May-01

Petty cash

$100.00

Cash

$100.00

Jun-01

Delivery Expense

$26.25

Postage Expense

$36.25

Miscellaneous Expense

$33.00

Cash over/short (Balance amount)

$2.00

Petty Cash ($100 - $2.50)

$97.50

Jul-01

Delivery expense

$18.75

Entertainment expense

$46.25

Miscellaneous expense

$32.00

Petty Cash ($100 - $3)

$97.00

Jul-10

Petty cash

$50.00

Cash

$50.00

Date

Account title and explanation

Debit

Credit

May-01

Petty cash

$100.00

Cash

$100.00

Jun-01

Delivery Expense

$26.25

Postage Expense

$36.25

Miscellaneous Expense

$33.00

Cash over/short (Balance amount)

$2.00

Petty Cash ($100 - $2.50)

$97.50

Jul-01

Delivery expense

$18.75

Entertainment expense

$46.25

Miscellaneous expense

$32.00

Petty Cash ($100 - $3)

$97.00

Jul-10

Petty cash

$50.00

Cash

$50.00

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