Childers Company has an established petty cash fund in the amount of $400.The fund was last reimbursed on November 30.At the end of December,the fund contained the following petty cash receipts: If,in addition to these receipts,the petty cash fund contains $201 of cash,the journal entry to reimburse the fund on December 31 will include:

Question

Childers Company has an established petty cash fund in the amount of $400.The fund was last reimbursed on November 30.At the end of December,the fund contained the following petty cash receipts:  If,in addition to these receipts,the petty cash fund contains $201 of cash,the journal entry to reimburse the fund on December 31 will include:

Quizplus · Accepted Answer

The total amount of receipts is $199 ($48 + $57 + $66 + $28). Adding the remaining cash in the petty cash fund of $201, the total is $400 ($199 + $201), which equals the established amount of the petty cash fund. Therefore, there is no need for any additional debit or credit to other accounts. The journal entry should credit Cash for $400 and debit Petty Cash for $400, resulting in a zero balance for the petty cash fund. Any overage or shortage in the petty cash fund should be recorded separately in the Cash Over and Short account.

Childers Company Has an Established Petty Cash Fund in the Amount