Question

Lyle Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.

Aug. 1 Established the petty cash fund by writing a check on Westown Bank for $226. 15 Replenished the petty cash fund by writing a check for $188. On this date, the fund consisted of $38 in cash and these petty cash receipts: freight-out $61.40, entertainment expense $23.00, postage expense $20.70 and miscellaneous expense $80.11. 16 Increased the amount of the petty cash fund to $426 by writing a check for $200. 31 Replenished the petty cash fund by writing a check for $296. On this date, the fund consisted of $130 in cash and these petty cash receipts: postage expense $132.00, entertainment expense $129.40, and freight-out $33.40.
1.) Journalize the petty cash transactions.
2.) Post to the Petty Cash account

Answer 1

Aug. 1 Established the petty cash fund by writing a check on Westown Bank for $226.

Dr Petty cash fund 226

Cr Cash 226

15 Replenished the petty cash fund by writing a check for $188. On this date, the fund consisted of $38 in cash and these petty cash receipts: freight-out $61.40, entertainment expense $23.00, postage expense $20.70 and miscellaneous expense $80.11.

Dr Freight out expense 61.40

Dr Entertainment expense 23

Dr Postage expenses 20.70

Dr Miscellaneous expenses 80.11

Dr Cash short and over 2.79

Cr Petty cash fund 188

Dr Petty cash fund 188

Cr Cash 188

16 Increased the amount of the petty cash fund to $426 by writing a check for $200.

Dr Petty cash fund 200

Cr Cash 200

31 Replenished the petty cash fund by writing a check for $296. On this date, the fund consisted of $130 in cash and these petty cash receipts: postage expense $132.00, entertainment expense $129.40, and freight-out $33.40.

Dr Freight out expense 33.40

Dr Entertainment expense 129.40

Dr Postage expenses 132

Dr Cash short and over 1.20

Cr Petty cash fund 296

Dr Petty cash fund 296

Cr Cash 296