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On October 2, 2011, Bienvenu Manufacturing Company established a petty cash fund by issuing a check for €350 to the custodian of the petty cash fund.On October 31, 2011, The custodian submitted the following paid petty cash vouchers for replenishment of the petty cash fund when there is €15 cash in the fund:
-The journal entry to establish the petty cash fund would include a

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On October 2, 2011, Bienvenu Manufacturing Company established a petty cash fund by issuing a check for €350 to the custodian of the petty cash fund.On October 31, 2011, The custodian submitted the following paid petty cash vouchers for replenishment of the petty cash fund when there is €15 cash in the fund: 
-The journal entry to establish the petty cash fund would include a

Quizplus · Accepted Answer

When establishing a petty cash fund, the initial transaction is to issue a check to the custodian of the fund, which would be recorded as a credit to cash. Therefore, choice A is the correct answer. Choice B is incorrect because Cash Over and Short is a temporary account used to adjust for any discrepancies in the petty cash fund and would only be used if there were any differences between the amount of cash on hand and the total of the paid vouchers. Choices C and D are incorrect because neither accounts receivable nor accounts payable are involved in establishing a petty cash fund.

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