Basque Ltd. maintains a petty cash fund with a balance of $800. On December 31, Basque's petty cash account has a balance of $60. Basque replenishes the petty cash account, as it does at the end of every month, but also decides to increase the fund balance to $1,000. Basque classifies all petty cash transactions as miscellaneous expense.

What journal entry is made to record this activity?

Dec. 31

Petty Cash

Miscellaneous Expense

Cash

(Replenish and increase the petty cash fund)