Answer:
Journal Entries:
May 1 Debit Petty Cash $450
Credit Cash $450
To establish the petty cash fund.
May 15 Debit Petty Cash $387
Credit Cash $387
To replenish the fund for expenses.
a. Debit Janitorial Expenses $160
Credit Petty Cash $160
b. Debit Miscellaneous expenses $120
Credit Petty Cash $120
c. Debit Postage expenses $80
Credit Petty Cash $80
d. Debit Advertisement $41
Credit Petty Cash $41
e. Debit Petty Cash $14
Credit Cash overage $14
To recognize the cash overage.
May 16 Debit Petty Cash $150
Credit Cash $150
To increase the petty cash fund to $600.
May 31 Debit Petty Cash $360
Credit Cash $360
To replenish the fund for expenses.
f. Debit Postage expenses $205
Credit Petty Cash $205
g. Debit Transport expense $103
Credit Petty Cash $103
h. Debit Freight-out $34
Credit Petty Cash $34
Debit Shortage $18
Credit Petty Cash $18
May 31 Debit Cash $120
Credit Petty Cash $120
To reduce the petty cash fund to $480.
Explanation:
a) Data and Analysis:
May 1 Petty Cash $450 Cash $450
May 15 Petty Cash $387 Cash $387
a. Janitorial Expenses $160 Petty Cash $160
b. Miscellaneous expenses $120 Petty Cash $120
c. Postage expenses $80 Petty Cash $80
d. Advertisement $41 Petty Cash $41
e. Petty Cash $14 Cash overage $14
May 16 Petty Cash $150 Cash $150
May 31 Petty Cash $360 Cash $360
f. Postage expenses $205 Petty Cash $205
g. Transport expense $103 Petty Cash $103
h. Freight-out $34 Petty Cash $34
Shortage $18 Petty Cash $18
May 31 Cash $120 Petty Cash $120
