Brown Industries plans to decrease a $294 petty cash fund to $108.The current balance in the account includes $60 in receipts and $234 in currency.The entry to reimburse and reduce the size of the petty cash fund will include a:

Question

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The petty cash fund currently has $234 in currency;only $108 is needed for the new,smaller balance.As a result,$126 (or $234 − $108)will be deposited in the company's bank (Cash)account.The journal entry to record that transaction will include a debit to Cash for $126.The various items that were paid are recorded in their corresponding accounts (with debits totaling $60).And,finally,the Petty Cash account will be reduced with a credit of $186 (or $294 − $108).

Brown Industries Plans to Decrease a $294 Petty Cash Fund