Question

Sadie Equestrian Services established a petty cash fund in the amount of $500 on June 1, 2013. On June 30, a review of the petty cash vouchers showed disbursements for the following: Stamps $60 Cab Fare for Ms. Sadie to attend meeting downtown $28 Dinner for employees working overtime $185 Messenger Costs for delivering legal documents $54 Advance to salesperson for attending networking event $25 Purchase of emergency office supplies $69. The Petty cash fund had a remaining cash balance of $77. The proprietor, Ms. Sadie also decided to increase the size of the Petty Cash fund to $700. Journalize the following:

a) Transaction to establish
Petty Cash Fund
b) Transaction to replenish
Petty Cash Fund on June 30
c) Transaction to increase the size of the
Petty Cash Fund

Answer 1

a. Date Description Debit Credit

1-Jun Petty cash fund $500

Cash $500

[To open the petty cash fund]

b. Date Description Debit Credit

30-Jun Stamps 60

Cab fare 28

Dinner expense 185

Messenger cost 54

Advance to sales person 25

Office supplies 69

Cash short and over 2

Petty cash fund 423

[To replenish the petty cash fund]

c. Date Description Debit Credit

June 30 Petty cash [$700-$500] $200

Cash $200

[To increase the petty cash fund]