A petty cash fund was established with a $400 balance.It currently has cash of $15 and petty cash tickets as shown below. $\begin{array}{|l|r|}
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies } & \$ 200 \
\hline \text { Equipment rental expense } & \$ 70\\hline
\end{array}$ The journal entry to replenish the account would be which of the following:

Question

A petty cash fund was established with a $400 balance.It currently has cash of $15 and petty cash tickets as shown below. $\begin{array}{|l|r|}
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies } & \$ 200 \
\hline \text { Equipment rental expense } & \$ 70\\hline 
\end{array}$ The journal entry to replenish the account would be which of the following:

Quizplus · Accepted Answer

The total of the petty cash tickets is $390 ($120 for travel expense, $200 for office supplies, and $70 for equipment rental expense), and there is $15 in cash remaining in the petty cash fund. This totals to $405, which is $5 more than the original fund balance of $400. This overage is credited to Cash short & over to correct the fund balance.

A Petty Cash Fund Was Established with a $400 Balance