Question

Finman Company designated Jill Holland as petty cash custodian and established a petty cash fund of 396. The fund is reimbursed when the cash in the fund is at21. Petty cash receipts indicate funds were disbursed for office supplies 93 and miscellaneous expense279. Prepare journal entries for the establishment of the fund and the reimbursement.

Answer 1

The journal entries for the establishment of the petty cash fund and the reimbursement.

Step-by-step explanation:

The journal entries for the establishment of the petty cash fund and the reimbursement are as follows:

Establishment of the Petty Cash Fund:

1. Debit Petty Cash Fund 396
2. Credit Cash 396

Reimbursement of Petty Cash Fund:

1. Debit Office Supplies Expense 93
2. Debit Miscellaneous Expense 279
3. Credit Petty Cash Fund 372
4. Credit Cash 372