Harrison Corporation uses a petty cash system to pay for miscellaneous expenses. Harrison established the petty cash fund with $300 on March 1, 2013. On March 31, 2013, the petty cash fund contained $56.49. The custodian of the fund saved the following vouchers for cash payments during March 2013: The three events related to petty cash were the following: (1) establishment of the fund, (2) cash payments for petty cash expenses, and (3) recognition of expenses and replenishment of the fund.
Required:
Prepare the journal entries for above events.

Question

Harrison Corporation uses a petty cash system to pay for miscellaneous expenses. Harrison established the petty cash fund with $300 on March 1, 2013. On March 31, 2013, the petty cash fund contained $56.49. The custodian of the fund saved the following vouchers for cash payments during March 2013:  The three events related to petty cash were the following: (1) establishment of the fund, (2) cash payments for petty cash expenses, and (3) recognition of expenses and replenishment of the fund.
Required:
Prepare the journal entries for above events.

Quizplus · Accepted Answer

The Answer of Harrison Corporation uses a petty cash system to pay for miscellaneous expenses. Harrison established the petty cash fund with $300 on March 1, 2013. On March 31, 2013, the petty cash fund contained $56.49. The custodian of the fund saved the following vouchers for cash payments during March 2013:  The three events related to petty cash were the following: (1) establishment of the fund, (2) cash payments for petty cash expenses, and (3) recognition of expenses and replenishment of the fund.
Required:
Prepare the journal entries for above events.

Harrison Corporation Uses a Petty Cash System to Pay for Miscellaneous