A petty cash fund was established with a $500 balance.It currently has cash of $40 and petty cash tickets as shown below. $$\begin{array} { | l | l | }
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies expense } & 310 \
\hline \text { Equipment rental expense } & 30\\hline
\end{array}$$ Which of the following would be the journal entry to replenish the Petty cash account?

Question

A petty cash fund was established with a $500 balance.It currently has cash of $40 and petty cash tickets as shown below. $$\begin{array} { | l | l | } 
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies expense } & 310 \
\hline \text { Equipment rental expense } & 30\\hline
\end{array}$$ Which of the following would be the journal entry to replenish the Petty cash account?

Quizplus · Accepted Answer

The petty cash fund needs to be replenished by the amount spent, which is $460 ($120 + $310 + $30). Therefore, you debit the various expenses for $460 and credit Cash for $460 to reflect the replenishment.

A Petty Cash Fund Was Established with a $500 Balance