Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Question E7-22

Intermediate Accounting (Kieso)
Found in: Page 369

Short Answer

(Petty Cash) Carolyn Keene, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.

1. On April 1, it established a petty cash fund in the amount of $200.

2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows

Delivery charges paid on merchandise purchased


Supplies Purchased and used


Postage expenses


I.O.U from employees


Miscellaneous expenses


The petty cash fund was replenished on April 10. The balance in the fund was $27.

3. The petty cash fund balance was increased $100 to $300 on April 20.


Prepare the journal entries to record transactions related to petty cash for the month of April

Cash short and over totals $2.

See the step by step solution

Step by Step Solution

Definition of Miscellaneous Expenses

A ledger account that reports all the minor expenses made by the business entity is known as a miscellaneous expense.

Journal Entries


Accounts and Explanation

Debit $

Credit $

April 1

Petty cash




April 10

Delivery charges


Supplies expenses


Postage expenses


I.O.U from employees


Miscellaneous expenses


Cash over and short




April 20

Petty cash




Most popular questions for Business-studies Textbooks


Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.