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    Accounting for Petty Cash Transactions

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    James Hughes Company established a petty cash fund on May 1, cashing a check for $119.84. The company reimbursed the fund on June 1 and July 1 with the following results.

    June 1: Cash in fund $3.65. Receipts: delivery expense $34.29; postage expense $39.27; and miscellaneous expense $25.34.

    July 1: Cash in fund $3.34. Receipts: delivery expense $21.45; entertainment expense $63.44; and miscellaneous expense $31.61.

    On July 10, James Hughes increased the fund from $119.84 to 197.03.

    Instructions

    Prepare journal entries for James Hughes Company for May 1, June 1, July 1, and July 10. (For multiple debit/credit entries, list amounts from largest to smallest.)

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    https://brainmass.com/business/accounting/accounting-for-petty-cash-transactions-419444

    Solution Summary

    This solution illustrates the entries made to create, replenish (i.e., reimburse), and increase a petty cash fund.

    $2.19

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