Question

Pelcher Co. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $110 for office supplies, $140 for merchandise inventory, and $70 for miscellaneous expenses. There is a cash overage of $4. The journal entry to replenish the fund on January 31 is:

Answer 1

The journal entry is as follows:

On January 31st,

Office supplies A/c Dr. $110

Merchandise inventory A/c Dr. $140

Miscellaneous expenses A/c Dr. $70

To cash over and short $4

To cash A/c $316

(To record the replenish the fund on January 31)