Blackwell Company established a petty cash fund in the amount of $200. At the end of the accounting period, the petty cash box contained receipts for expenditures amounting to $180 and $15 in cash. What effect will the entries to replenish the fund have on assets and expenses?

Question

Quizplus · Accepted Answer

The entry will decrease assets (cash) by $185, increase miscellaneous expenses by $180 and increase cash short (also an expense) by $5.

Blackwell Company Established a Petty Cash Fund in the Amount