Question

terrys dance studio created a $350 imprest petty - cash fund. during the month, the fund custodian authorized and signed petty - cash tickets as follows:
requirement 1. make the general journal entry to create the petty - cash fund. include an explanation. (record debits first, then credits. select the explanation on the last line of the journal entry table.)
petty cash tickets
petty cash
ticket no. item account debited amount
ticket no. 1 delivery of programs to customers delivery expense $25
ticket no. 2 mail package postage expense 45
ticket no. 3 newsletter printing expense 20
ticket no. 4 key to closet miscellaneous expense 30
ticket no. 5 copier paper supplies 85

Explanation:

Step1: Identify accounts involved

To create a petty - cash fund, we debit the Petty Cash account to increase its balance and credit the Cash account (assuming cash is transferred from the main cash account).
Debit: Petty Cash
Credit: Cash

Step2: Record the amount

The petty - cash fund is created for $350. So, the debit and credit amounts are $350 each.

Date	Accounts and Explanation	Debit	Credit
	Cash		350

Answer:

Date	Accounts and Explanation	Debit	Credit
	Cash		350