Question

Required information Required information Skip to question Petty cash payments are payments of small amounts for items such as postage, courier fees, minor repairs, and supplies. A company usually sets up one or more petty cash funds. A petty cash fund cashier is responsible for safekeeping the cash, making payments from this fund, and keeping receipts and records. A Petty Cash account is debited only when the fund is established or increased in amount. When the fund is replenished, petty cash payments are recorded with debits to expense (or asset) accounts and a credit to Cash. Knowledge Check 01 Recall on February 1, Derrick Company established a $200 petty cash fund. On February 15, when the fund balance reached $7, the petty cash custodian prepared a petty cash report that summarized receipts for postage ($140) and printing ($54). Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.

Answer 1

Dr Postage expense $140

Dr Printing charges $54

Cr Cash $193

Cr Cash over and short $1

Step-by-step explanation:

Preparation of the l necessary journal entry

Based on the information given the journal entry will be :

Dr Postage expense $140

Dr Printing charges $54

Cr Cash $193

($140+$54-$1)

Cr Cash over and short $1

{$7-[$200-($140+$54)]}

[$7-($200-$194)]

($7-$6=$1)