A petty cash fund was established with a $525 balance. It currently has cash of $65 and petty cash tickets as shown below: $$\begin{array} { | l | r | }
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies expense } & 310 \
\hline \text { Equipment rental expense } & 30 \
\hline
\end{array}$$ Which of the following would be the journal entry to replenish the Petty Cash account?

Question

A petty cash fund was established with a $525 balance. It currently has cash of $65 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies expense } & 310 \
\hline \text { Equipment rental expense } & 30 \
\hline
\end{array}$$ Which of the following would be the journal entry to replenish the Petty Cash account?

Quizplus · Accepted Answer

The total of the petty cash tickets is $460 ($120 + $310 + $30), which represents the amount spent from the petty cash fund. To replenish the fund back to its original balance, you would debit the various expenses for $460 and credit Cash for $460, reflecting the cash outflow to replenish the fund.

A Petty Cash Fund Was Established with a $525 Balance