Question

Sheridan Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug. 1Established the petty cash fund by writing a check payable to the petty cash custodian for $225. 15Replenished the petty cash fund by writing a check for $220.30. On this date, the fund consisted of $4.70 in cash and these petty cash receipts: freight-out $96.00, entertainment expense $48.70, postage expense $41.70, and miscellaneous expense $32.50. 16Increased the amount of the petty cash fund to $325 by writing a check for $100.00. 31Replenished the petty cash fund by writing a check for $309.30. On this date, the fund consisted of $15.70 in cash and these petty cash receipts: postage expense $139.80, entertainment expense $96.40, and freight-out $71.80. (a) Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)

Answer 1

01-Aug

Dr Petty Cash $225

Cr Cash $225

15-Aug

Dr Freight Out $96

Dr Postage Expense $41.70

Dr Entertainment Expense $48.70

Dr Miscellaneous Expenses $32.50

Dr Cash Over and Short $1.1

Cr Cash $220

16-Aug

Dr Petty Cash $225

Cr Cash $225

31-Aug

Dr Postage Expense $139.80

Dr Entertainment Expense $96.40

Dr Freight Out $71.80

Dr Cash Over and Short $1.3

Cr Cash $309.30

Step-by-step explanation:

Preparation of the petty cash transactions.

01-Aug

Dr Petty Cash $225

Cr Cash $225

(To Record Establishment of fund )

15-Aug

Dr Freight Out $96

Dr Postage Expense $41.70

Dr Entertainment Expense $48.70

Dr Miscellaneous Expenses $32.50

Dr Cash Over and Short $1.1

($220-$96-$41.70-$48.70-$32.50)

Cr Cash $220

(To Record Expenses)

16-Aug

Dr Petty Cash $225

Cr Cash $225

(To increase cash in fund )

31-Aug

Dr Postage Expense $139.80

Dr Entertainment Expense $96.40

Dr Freight Out $71.80

Dr Cash Over and Short $1.3

Cr Cash $309.30

($309.30-$139.80-$96.40-$71.80)

(To Record Expenses)