Final answer:
The journal entry for the replenishment of the petty cash fund includes debiting the expenses and crediting the petty cash fund for the total amount of the vouchers.
Step-by-step explanation:
The custodian of the petty cash fund for the Tororica Inn needs to replenish the fund back to its original $100. After examining the fund, they found $10 in cash and vouchers for various expenses that totaled $90 ($15 taxi fare, $29 postage, $18 office supplies, $20 parking receipts, and $12 freight charges).
The journal entry for the replenishment of the petty cash fund is as follows:
- Debit: Office supplies $18
- Debit: Taxi fare $15
- Debit: Postage $29
- Debit: Parking receipts $20
- Debit: Freight charges $12
- Credit: Petty cash $94
The journal entry debits the various expenses and credits the petty cash fund for the total amount of the vouchers. The amount credited to the petty cash fund is $94 which is the total of the vouchers, therefore increasing the fund to its original amount of $100.