A petty cash fund was established with a $600 balance.It currently has cash of $19 and petty cash tickets as shown below: $$\begin{array} { | l | r | }
\hline \text { Travel expense } & \$ 102 \
\hline \text { Office supplies expense } & 285 \
\hline \text { Equipment rental expense } & 79 \
\hline
\end{array}$$ 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 $19 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 102 \
\hline \text { Office supplies expense } & 285 \
\hline \text { Equipment rental expense } & 79 \
\hline
\end{array}$$ Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Quizplus · Accepted Answer

The total expenses are $466 ($102 + $285 + $79). The cash remaining is $19, so the cash short is $115 ($600 - $466 - $19). Therefore, a debit to Cash Short & Over for $115 is needed to account for the discrepancy.

A Petty Cash Fund Was Established with a $600 Balance