Question

Murdstone, Inc. issued a check on January 2 to establish a petty cash fund of $500. On January 31, the amount of cash in the petty cash fund is $440. The company would like to issue a check to replenish the fund, based on the following summary of petty cash receipts:

Account	Amount on Receipt
Office Supplies	$30.00
You are in Column AccountMiscellaneous Administrative Expense	You are in Column Amount on Receipt$23.00

The company’s policy is to record any missing funds in the Cash Short and Over account.

The new intern has prepared a proposed journal entry to record the replenishing of the petty cash fund:

PAGE 17

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Jan. 31	Petty Cash		53.00		↑
2		Cash			53.00	↓

Prepare for your discussion with the intern by journalizing the correct entry for the replenishment of the petty cash fund. Refer to the Chart of Accounts for exact wording of account titles.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4

Answer 1