record the replenishment for petty cash back to $20. (record debits first, then credits. explanations are…
record the replenishment for petty cash back to $20. (record debits first, then credits. explanations are not required. round your answers to the nearest cent.)
Answer
Explanation:
Step1: Calculate amount to replenish
The petty - cash fund needs to be brought back to $20 and has a balance of $7.50. So the amount to replenish is $20 - $7.50=$12.50.
Step2: Record journal entry
Debit the various expense accounts (not specified in the problem) for the amount of petty - cash expenditures that reduced the fund balance. Here we assume a single "Miscellaneous Expenses" account for simplicity. Debit Miscellaneous Expenses for $12.50. Credit Cash for $12.50 to record the transfer of funds to replenish the petty - cash fund.
Answer:
| Accounts | PR | Debit | Credit |
|---|---|---|---|
| Miscellaneous Expenses | $12.50 | ||
| Cash | $12.50 |