On January 1, Fast Translators decided to establish a petty cash fund for the office. A cheque
Question:
On January 1, Fast Translators decided to establish a petty cash fund for the office. A cheque of $220 was issued and cashed. The $220 cash was given to the office manager who was to act as the petty cashier. He decided that the petty cash fund should be replenished when the balance in the cash box reached $80.
On January 25, the balance in the petty cash account was $80. A summary of the expenses was prepared.
| Delivery Expense | $33 |
| Maintenance Expense | $44 |
| Postage Expense | $47 |
| Supplies Expense | $15 |
On January 31, with input from the petty cashier, management decided to increase the amount of the petty cash fund to $260.
Answer the following multiple-choice questions by selecting the correct answer from the dropdown boxes.
1) What is the journal entry to establish the petty cash fund on January 1?
2) On January 25 when the petty cash fund is replenished, is there an over or short?
3) What is the journal entry to increase the petty cash fund on January 31?
4) How much cash is needed to replenish the petty cash fund on January 25? What is the total of all petty cash expenses on January 25?
Expert Answer:
1 Option Debit petty cash by 220 and credit cash by 220 Date Accounts and Explanation ... View the full answer
