Question

On March 20, Oriole's petty cash fund of $119 is replenished when the fund contains $12 in cash and receipts for postage $49, freightout $21, and travel expense $32. Prepare the journal entry to record the replenishment of the petty cash fund. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

The journal entry to replenish Oriole's petty cash fund includes debiting the Postage Expense, Freight-Out Expense, and Travel Expense accounts and crediting the Cash account to restore the petty cash fund to its original amount.

Step-by-step explanation:

replenishment of the petty cash fund when the fund contains:

To record the replenishment of the petty cash fund when the fund contains $12 in cash and receipts totaling $107 ($49 for postage, $21 for freight-out, and $32 for travel expense), we need to account for the expenses and restore the fund to its original amount of $119. We do this by debiting the expense accounts and crediting the cash account.

The total cash to replenish is calculated by subtracting the remaining cash from the initial fund amount ($119 - $12).. Debit the individual expense accounts - postage, freightout, and travel expense - for their respective amounts ($49, $21, $32). . Debit the cash short account for the amount of shortage or overage. In this case, there is a shortage of $5. Debit the petty cash account for the total amount of expenses paid from the fund ($49 + $21 + $32 = $102). Credit the cash account for the total amount of cash replenished ($119).