Question

QS 6-6 Petty cash accounting LO P2 1. Brooks Agency set up a petty cash fund for $280. At the end of the current period, the fund contained $198 and had the following receipts: entertainment, $50; postage, $24; and printing, $8. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.

Answer 1

1a

Dr Petty cash $ 280

Cr Cash $ 280

1b

Dr Entertainment $ 50

Dr Postage $ 24

Dr Printing $ 8

Cr Cash $ 82

Step-by-step explanation:

Journal entry

1a

Dr Petty cash $ 280

Cr Cash $ 280

( To record petty cash fund created)

1b

Dr Entertainment $ 50

Dr Postage $ 24

Dr Printing $ 8

Cr Cash $ 82

(50+24+8)

(To Record Petty cash replenished)