a petty cash fund was established with a $600 balance. it currently has cash of $35 and petty cash tickets…

a petty cash fund was established with a $600 balance. it currently has cash of $35 and petty cash tickets as shown below\ntravel expense $115\nsupplies expense 250\nequipment rental expense 110\nwhich of the following would be included in the journal entry to replenish the petty cash fund?\na. debit to cash short & over for $90\nb. debit to petty cash for $90\nc. credit to cash short & over for $90\nd. credit to petty cash for $90

a petty cash fund was established with a $600 balance. it currently has cash of $35 and petty cash tickets as shown below\ntravel expense $115\nsupplies expense 250\nequipment rental expense 110\nwhich of the following would be included in the journal entry to replenish the petty cash fund?\na. debit to cash short & over for $90\nb. debit to petty cash for $90\nc. credit to cash short & over for $90\nd. credit to petty cash for $90

Answer

Explanation:

Step1: Calculate total expenses

$$115 + 250+110=$475$$

Step2: Calculate cash shortage

The petty - cash fund was established with $600. The sum of cash on hand ($35) and total expenses ($475) is $35 + 475=$510$. The cash shortage is $600 - 510=$90$. When replenishing the petty - cash fund, if there is a cash shortage, the “Cash Short & Over” account is debited.

Answer:

A. debit to Cash Short & Over for $90