On April 3, Snappy Sales decides to establish a $135 petty cash fund to relieve the burden on Accounting.
(a) Journalize the establishment of the fund.
(b) On April 11, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of$25.25, meals and entertainment of $68.00, and $9.75 in cash. Journalize the replenishment of the fund.
(c) On April 12, Snappy Sales decides to increase petty cash to $175. Journalize this transaction.

Question

hawra alkhawaja · Accepted Answer

Final Answer :   (a) Apr. 3  P e t t y   C a s h 135.00  Cash  135.00  (b)     11   Mail and Postage Expense  32.75  Contributi ons and Donations   Expense  25.25  Meals and Entertainment   Expense  68.00  Cash Short and Over  0.75  Cash  125.25 ( c )       12  Petty Cash  40.00  Cash  40.00 \begin{array}{|l|l|r|r|}\hline  	ext { (a) Apr. 3 } & Petty~Cash  &  135.00  &  \\hline  &  	ext { Cash }  &   &  135.00 \\hline   &   &   &  \\hline 	ext { (b)~~~~~11 } &  	ext { Mail and Postage Expense }  &  32.75  &  \\hline  &  \begin{array}{l}	ext { Contributi ons and Donations } \	ext { Expense }\end{array}  &  25.25  &  \\hline &  \begin{array}{l}	ext { Meals and Entertainment } \	ext { Expense }\end{array}  &  68.00  &  \\hline  &  	ext { Cash Short and Over }  &   &  0.75 \\hline  &  	ext { Cash }  &   &  125.25 \\hline\\hline (c)~~~~~12 &  	ext { Petty Cash }   &  40.00  &  \\hline  &  	ext { Cash }  &   &  40.00 \\hline\end{array}  (a) Apr. 3   (b)       11  ( c )           12 ​ P e tt y   C a s h  Cash   Mail and Postage Expense   Contributi ons and Donations   Expense  ​  Meals and Entertainment   Expense  ​  Cash Short and Over   Cash   Petty Cash   Cash  ​ 135.00 32.75 25.25 68.00 40.00 ​ 135.00 0.75 125.25 40.00 ​ ​

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