Gross Company established a $250 petty cash fund on January 1,2016.On March 1,2016 the fund contained $160 in receipts for miscellaneous expenses and $85 in cash.The entries necessary to replenish the petty cash fund will

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The petty cash fund was established on January 1, 2016 with $250. On March 1, 2016, the remaining cash on hand was $85 and the receipts for miscellaneous expenses amounted to $160. Therefore, the total amount disbursed is $250 - $85 = $165. To replenish the petty cash fund, the corresponding entry should be a credit to Cash (decreasing assets) for $165 and a debit to various expense accounts for $160 and a debit to Petty Cash (increasing its balance back to $250) for $85. Thus, the entries will decrease assets by $165.

Gross Company Established a $250 Petty Cash Fund on January