Question

Based on the following petty cash information, prepare

a. the journal entry to establish a petty cash fund
b. the journal entry to replenish the petty cash fund.

On January 1, 2021, a check was written in the amount of $200 to establish a petty cash fund. During January, the following vouchers were written for cash removed from the petty cash drawer:

Voucher No. Account Debited Amount
1 Phone Expense $17.50
2 Automobile Expense 33.00
3 Joseph Levine, Drawing 54.00
4 Postage Expense 12.50
5 Charitable Contributions Expense 15.00
6 Miscellaneous Expense 49.00

Answer 1

a. Date Description Debit Credit

Jan 1 Petty cash $200

Cash $200

(Establishment of petty cash fund)

b. Date Description Debit Credit

Jan 31 Phone Expense $17.50

Automobile Expense $33

Joseph Levine, Drawing $54

Postage Expense $12.50

C. Contributions Expense $15

Miscellaneous Expense $49

Petty cash $181

(Replenishment of petty cash fund)