Question

On March 20, Concord’s petty cash fund of $119 is replenished when the fund contains $6 in cash and receipts for postage $49, freight-out $18, and travel expense $42. Prepare the journal entry to record the replenishment of the petty cash fund.

Answer 1

The required entry is shown below.

Explanation:

Consider the provided information.

It is given that Concord’s petty cash fund of $119 is replenished when the fund contains $6 in cash and receipts for postage $49, freight-out $18, and travel expense $42.

First find the total of cash in hand and receipt:

Total = $6+$49+$18+$42 = $115

The total should be $119, that means the cash shortage is:

$119-$115 = $4

Therefore, the journal entry to record the replenishment of the petty cash fund is

Debit Credit

Postage $49

Freight out $18

Travel expense $42

Cash over and short $4

Cash $119-6 = $113