A petty cash fund was established with a $400 balance.It currently has cash of $9 and petty cash tickets as shown below. $\begin{array}{|l|r|}
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies } & \$ 200 \
\hline \text { Equipment rental expense } & \$ 70\\hline
\end{array}$ The journal entry to replenish the account would be which of the following:

Question

A petty cash fund was established with a $400 balance.It currently has cash of $9 and petty cash tickets as shown below. $\begin{array}{|l|r|}
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies } & \$ 200 \
\hline \text { Equipment rental expense } & \$ 70\\hline 
\end{array}$ The journal entry to replenish the account would be which of the following:

Quizplus · Accepted Answer

The total of the petty cash tickets is $390 ($120 for travel expense, $200 for office supplies, and $70 for equipment rental expense). Given that the fund currently has $9 in cash, this means $400 (initial balance) - $390 (expenses) = $10 was expected to be in the fund, but only $9 is present. This indicates a $1 shortage, which should be accounted for by debiting (increasing) the Cash Short & Over account.

A Petty Cash Fund Was Established with a $400 Balance