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 expenses are $390 ($120 + $200 + $70), leaving $10 in the fund ($400 - $390). Since there's actually $15 in cash, there's an overage of $5, which is credited to Cash Short & Over.

A Petty Cash Fund Was Established with a $400 Balance