Asked by ariana marie on May 05, 2024
Verified
Journalize the entries to record the following:
Apr. 1
Established a petty cash fund of $350.10
Cash sales for the day, according to the cash register records, totaled $3,120. The actual cash received from cash sales was $3,122.30
The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following petty cash receipts: office supplies, $98; postage, $106; miscellaneous, $12. Record any missing funds in the cash short and over account.30
Cash sales for the day, according to the cash register records, totaled $6,350. The actual amount of cash received for the day was $6,336.30
Decreased the petty cash fund by $100.
Journal 
Petty Cash Fund
A small amount of cash kept on hand to pay for minor, incidental expenses of a business, recorded as a current asset on the balance sheet.
Cash Short
A situation where the actual cash on hand is less than the recorded amount in the accounting records, often resulting in a discrepancy during reconciliation.
Petty Cash Receipts
Documentation of small amounts of cash expenditures from a petty cash fund, used for minor business expenses.
- Employ cash management internal controls and comprehend their effects on financial statements.
- Execute journal entries related to petty cash transactions, identifying discrepancies and adjusting accounts appropriately.
Verified Answer
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Learning Objectives
- Employ cash management internal controls and comprehend their effects on financial statements.
- Execute journal entries related to petty cash transactions, identifying discrepancies and adjusting accounts appropriately.