Question

Brooks Agency set up a petty cash fund for $100. At the end of the current period, the fund contained $16 and had the following receipts: entertainment, $53; postage, $20; and printing. $11. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period. Journal entry worksheet Record the establishment of the petty cash fund. Note: Enter debits before credits,

Answer 1

Journal entries are made to record the establishment and reimbursement of a petty cash fund. Debits are made for the petty cash amount and expenses, while credits are recorded against cash for both the initial and reimbursement transactions.

Step-by-step explanation:

The question involves preparing journal entries for the establishment and reimbursement of a petty cash fund in accounting. When Brooks Agency sets up a petty cash fund for $100, the journal entry to record the establishment of the fund is: Debit Petty Cash $100 Credit Cash $100 To reimburse the fund at the end of the current period, which has $84 in expenses ($53 for entertainment, $20 for postage, and $11 for printing) and $16 cash remaining in the fund, the journal entry is Debit Entertainment Expenses $5 Debit Postage Expenses $20 Debit Printing Expenses $1 Credit Cash $84