terrys dance studio created a $350 imprest petty - cash fund. during the month, the fund custodian…
terrys dance studio created a $350 imprest petty - cash fund. during the month, the fund custodian authorized and signed petty - cash tickets as follows:\nrequirement 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.)\npetty cash tickets\npetty cash\nticket no. item account debited amount\nticket no. 1 delivery of programs to customers delivery expense $25\nticket no. 2 mail package postage expense 45\nticket no. 3 newsletter printing expense 20\nticket no. 4 key to closet miscellaneous expense 30\nticket no. 5 copier paper supplies 85
Answer
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 |
|---|---|---|---|
| [Date of creation] | Petty Cash (To establish petty - cash fund) | 350 | |
| Cash | 350 |
Answer:
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| [Date of creation] | Petty Cash (To establish petty - cash fund) | 350 | |
| Cash | 350 |