Question

A company has a petty cash fund amount of $200. When​ replenished, it has petty cash receipts of $30 for gas​ expense, $31 for postage​ expense, $12 for supplies​ expense, and $9 for miscellaneous expenses. Assume the cash balance is not over or short. In the journal​ entry, Cash would be credited for​ ________.

Answer 1

Cash would be credited for $82 in the journal entry to replenish the petty cash fund, representing the sum of all expenses paid out of petty cash.

Step-by-step explanation:

When a company replenishes its petty cash fund, the total amount of the receipts for the expenses is recorded as a debit to the appropriate expense accounts, and cash is credited for the total amount that is being replenished.

Here, the petty cash receipts are $30 for gas expense, $31 for postage expense, $12 for supplies expense, and $9 for miscellaneous expenses.

All these amounts sum up to $82 ($30 + $31 + $12 + $9). Since the cash balance is not over or short, the journal entry would show a debit to the various expense accounts for the individual amounts and a credit to Cash for the total amount of $82. No entries are made for the petty cash receipts themselves, only for the total that is being replenished.

In the journal​ entry, Cash would be credited for $82.00.

When replenishing the petty cash fund, the company recorded petty cash expenditures of $30 for gas​ expense, $31 for postage​ expense, $12 for supplies​ expense, and $9 for miscellaneous expenses. Therefore, the total amount spent from the petty cash fund is $82.00 ($30 + $31 + $12 + $9).

To replenish the fund, the company would credit Cash for the total amount spent, which is $82.00.