A petty cash fund was established with a $575 balance.It currently has cash of $45 and petty cash tickets as shown below: $$\begin{array} { | l | r | }
\hline \text { Travel expense } & \$ 100 \
\hline \text { Office supplies expense } & 300 \
\hline \text { Equipment rental expense } & 110 \
\hline
\end{array}$$ 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 $575 balance.It currently has cash of $45 and petty cash tickets as shown below: $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 100 \
\hline \text { Office supplies expense } & 300 \
\hline \text { Equipment rental expense } & 110 \
\hline
\end{array}$$ Which of the following would be included in the journal entry to replenish the Petty Cash fund?

Quizplus · Accepted Answer

The total expenses recorded are $510 ($100 + $300 + $110), and the cash remaining is $45. The total should be $575, so there is a $20 shortage ($575 - $510 - $45). This shortage is recorded as a debit to Cash Short & Over.

A Petty Cash Fund Was Established with a $575 Balance