A petty cash fund was established with a $600 balance. It currently has cash of $17 and petty cash tickets as shown below: $$\begin{array} { | l | r | }
\hline \text { Travel expense } & \$ 102 \
\hline \text { Office supplies expense } & 285 \
\hline \text { Equipment rental expense } & 80 \
\hline
\end{array}$$ Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Question

A petty cash fund was established with a $600 balance. It currently has cash of $17 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 102 \
\hline \text { Office supplies expense } & 285 \
\hline \text { Equipment rental expense } & 80 \
\hline
\end{array}$$ Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Quizplus · Accepted Answer

The total expenses are $102 + $285 + $80 = $467. The fund started with $600 and now has $17 left, so $600 - $17 = $583 was used. The difference between the actual expenses ($467) and the amount used ($583) is $116, which indicates a shortage that should be debited to Cash Short & Over.

A Petty Cash Fund Was Established with a $600 Balance