Question

Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. The journal entry to replenish the fund on January 31 is:Multiple ChoiceA. Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Dr. Cash over and short, $8; Cr. Petty cash, $268.B. Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Cr. Cash over and short, $8; Cr. Petty cash, $252.C. Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Cr. Cash over and short, $8; Cr. Cash, $252.D. Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Dr. Cash over and short, $8; Cr. Cash, $268.E. Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Cr. Cash over and short, $8; Cr. Petty cash, $400.

Answer 1

What the answer jk

Answer 2

THE ANSWER IS "A". Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Dr. Cash over and short, $8; Cr. Petty cash, $268.

DR: PETTY CASH $268

CR: CASH/BANK $268

BEING REIMBURSEMENT OF PETTY CASH EXPENSES FROM CASH OR BANK

Step-by-step explanation:

THE PETTY CASH OF MENG CO. HAS TO BE REPLENISHED WITH THE AMOUNT SPENT OUT OF IT ($268) IN ORDER TO MAKE IT UP TO A FUND OF $300. THIS CAN BE DONE FROM THE CASH OR BANK ACCOUNT.

ALSO NOTE THAT SINCE THE AMOUNT OF CASH SHORTAGE IS YET TO BE ACCOUNTED FOR BY THE PETTY CASHIER, THE AMOUNT WILL BE DEBITED TO A SUSPENSE ACCOUNT (CASH OVER OR SHORT) PENDING THE TIME IT IS RESOLVED BEFORE IT WILL BE TRANSFERRED TO THE NECESSARY ACCOUNT IT WAS MEANT FOR.