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Established a petty cash fund of $745. sold was $20,810. Wrong options- Journal Entry: To record expense which paid by petty cash: The company record debit expense $ 800 and credit petty cash $ 800. Petty Cash | Cash Over and Short | Financial Accounting CPA Course Wish you knew more about the numbers side of running your business, but not sure where to start? With your knowledge of accounts, debits and credits, and T accounts, you should be able to figure out any entries that crop up. Nov. 30. each evidenced by a petty cash receipt: Jan. 3. Express charges on merchandise purchased, $146 31. Payment by check involves a long encashing procedure found unnecessary to go through when the small payments could easily be settled in cash. The petty cash account, Cash Short and Over, is a temporary account. To record the shortage, the following journal entry is done: In this case, Cash Over and Short acts like an Expense account. Established a petty cash fund As a company grows, it may find a need to increase the base size of its petty cash fund. Get it as soon as Sunday, Aug 7. In these cases, cash variances should be stored in a single, easily-accessible account. Cash Cr. Store supplies, $154. The Cash Sales for the day, according to the cash register records, totaled $9780. She holds Masters and Bachelor degrees in Business Administration. Why profit shouldn't be A car saleswoman has worked for the same car sales company for shares of Cisco Systems, What Is Venture Capital Financing? 30. 30. Any transactions made into or out of petty cash need to be recorded on the petty cash log. Established a petty cash fund of $1,400. Discuss the pros and cons. Since you are using a double-entry accounting system, you can see if all entries were recorded correctly. Alternatively, the cashier could simply count out the cash for the petty cash fund, if there are enough bills and coins on the premises. 12. (Merchandise Inventory). 3,6 Wyoming Restoration Company completed the following selected transactions during July 20Y1:; July 1. 30. Cedar Springs Company completed the following selected transactions Transactions for Petty Cash, Cash Short and Over OBJ. The actual cash received from cash sales was $13,350.