A petty cash fund was established with a $525 balance. It currently has cash of $45 and petty cash tickets as shown below: $$\begin{array} { | l | r | }
\hline \text { Travel expense } & \$ 105 \
\hline \text { Office supplies expense } & 250 \
\hline \text { Equipment rental expense } & 110 \
\hline
\end{array}$$ 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 $525 balance. It currently has cash of $45 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 105 \
\hline \text { Office supplies expense } & 250 \
\hline \text { Equipment rental expense } & 110 \
\hline
\end{array}$$ Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Quizplus · Accepted Answer

The total expenses are $465 ($105 + $250 + $110), and the remaining cash is $45. The original fund was $525, so the difference ($525 - $465 - $45) is $15, which indicates a shortage that should be debited to Cash Short & Over.

A Petty Cash Fund Was Established with a $525 Balance