Asked by Camay Bhakoo on Jun 30, 2024
Verified
The journal entry to replenish the fund on January 31 is:
A) Dr.Office Supplies,$80; Dr.Merchandise inventory,$160; Dr.Miscellaneous expenses,$20; Dr.Cash over and short,$8; Cr.Petty cash,$268.
B) Dr.Office Supplies,$80; Dr.Merchandise inventory,$160; Dr.Miscellaneous expenses,$20; Cr.Cash over and short,$8; Cr.Petty cash,$252.
C) Dr.Office Supplies,$80; Dr.Merchandise inventory,$160; Dr.Miscellaneous expenses,$20; Cr.Cash over and short,$8; Cr.Cash,$252.
D) Dr.Office Supplies,$80; Dr.Merchandise inventory,$160; Dr.Miscellaneous expenses,$20; Dr.Cash over and short,$8; Cr.Cash,$268.
E) Dr.Office Supplies,$80; Dr.Merchandise inventory,$160; Dr.Miscellaneous expenses,$20; Cr.Cash over and short,$8; Cr.Petty cash,$400.
Journal Entry
An accounting record of a business transaction in the accounting books, including information such as the date of the transaction, amounts, accounts affected, and a brief description.
Petty Cash
A small amount of cash on hand used for minor expenses.
Merchandise Inventory
Refers to the goods a company has on hand for the purpose of resale to customers in the normal course of business.
- Analyze and prepare journal entries related to petty cash transactions, including establishment, replenishment, and adjustment of the fund size.
Verified Answer
JB
josef boccardJul 05, 2024
Final Answer :
D
Explanation :
The total expenses accounted for are $80 (office supplies) + $160 (merchandise inventory) + $20 (miscellaneous expenses) = $260. The cash shortage of $8 is an additional expense, making the total $268. This amount is replenished from cash, hence Dr. Office Supplies $80, Dr. Merchandise Inventory $160, Dr. Miscellaneous Expenses $20, Dr. Cash Over and Short $8, Cr. Cash $268.
Learning Objectives
- Analyze and prepare journal entries related to petty cash transactions, including establishment, replenishment, and adjustment of the fund size.