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Fargo company established a $250 petty cash fund on March 1

Fargo company established a $250 petty cash fund on March 1 of this year.
On March 22, the fund showed $155 in cash, and receipts for the following expenditures: $32 postage, $48 gasoline expenses, and $13 transportation-in. Fargo uses the perpetual system of accounting for merchandise inventories.
What would be the journal entry to replenish the fund on March 22?
Fargo Company
Item Account Name Post Ref DEBIT CREDIT
1 Petty Cash $250
Cash $250

2 Miscellaneous Expense $15
Various Expenses $140
Cash $155

3 Postage Expense $32
Gasoline Expense $48
Cash Over & Short $2
Merchandise Inventory $13
Cash $95

4 Various Expenses $95
Cash $95
Answer
A. Item # 1 is the correct journal entry
B. Item # 3 is the correct journal entry
C. Item # 2 is the correct journal entry
D. Item # 4 is the correct journal entry

Solution Preview

32+48+13 = 93

3 Postage Expense $32
Gasoline Expense $48
Cash Over ...

Solution Summary

The following posting helps answer various questions related to financial journal entries.

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