Martha Company has an established petty cash fund in the amount of $500.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 $301 of cash,the journal entry to reimburse the fund on December 31 will include:

Question

Martha Company has an established petty cash fund in the amount of $500.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 $301 of cash,the journal entry to reimburse the fund on December 31 will include:

Quizplus · Accepted Answer

Opening cash balance of $500. Subtract the $189 of disbursements from the petty cash fund during December (as evidenced by the petty cash receipts). This yields an expected cash balance of $311. Since there is only $301 of cash in the fund, the journal entry to reimburse the fund will include a $10 debit to Cash Over and Short.

Martha Company Has an Established Petty Cash Fund in the Amount