Question

Petty Cash Record and Journal Entries On May 1, a petty cash fund was established for $137.50. The following vouchers were issued during May: Date Voucher No. Amount $ 3.40 13.00 5 3 auto repair (miscellaneous) 40.00 23.00 8.00 24.00 3.10 4.00 18.00 Purpose May 1 1 postage due 3 2 office supplies 7 4 drawing (Joy Adams) 11 5 donation (Red Cross) 15 6 travel expenses 22 7 postage stamps 26 8 phone call 30 9 donation (Boy Scouts)

Required:
1. Prepare the journal entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank. .
2. Record the vouchers in the petty cash record. Total each column to determine the balance before replenishing the petty cash fund. When equired, enter amounts in dollars and cents
3. Prepare the journal entry to replenish the petty cash fund. Then record the amount in the petty cash record in part 2. If an amount box does not ire an entry, leave it blank.

Answer 1

To establish the petty cash fund, make a journal entry for the initial amount. Record the vouchers in the petty cash record, updating the balance. To replenish the fund, make a journal entry and deduct the vouchers from the balance.

Step-by-step explanation:

To establish the petty cash fund, the journal entry would be:

Cash 137.50

Petty Cash 137.50

To record the vouchers in the petty cash record, you would enter the date, voucher number, amount, and purpose for each voucher.

The petty cash record should be updated to calculate the balance before replenishing the fund.

To replenish the petty cash fund, the journal entry would be:

Petty Cash 62.50

Office Supplies 2.00

Auto Repair 40.00

Travel Expenses 6.00

Phone Call 8.00

The amount of the replenishment is calculated by subtracting the total vouchers from the original amount of the fund. The vouchers recorded in part 2 should be deducted from the balance in the petty cash record.