Question
Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the
Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the petty cash fund is $440. The company would like to issue a check to replenish the fund, based on the following summary of petty cash receipts:
Account | Amount on Receipt |
Office Supplies | $30.00 |
You are in Column AccountMiscellaneous Administrative Expense | You are in Column Amount on Receipt$23.00 |
The companys policy is to record any missing funds in the Cash Short and Over account.
The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund:
PAGE 17
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 | Jan. 31 | Petty Cash |
| 53.00 |
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2 |
| Cash |
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| 53.00 |
|
|
Prepare for your discussion with the intern by journalizing the correct entry for the replenishment of the petty cash fund. Refer to the Chart of Accounts for exact wording of account titles.
All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ||||
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