Journalize the entries to record the following: a. Check No. 12-375 is issued to establish a petty cash fund of $500.
b. The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)

Required:
1. Journalize the entry to establish the petty cash fund.
2. Journalize the entry to replenish the petty cash fund.

a. Dr Petty cash$500

Cr Cash $500

b. Dr Office supplies$212

Dr Miscellaneous selling expense$156

Dr Miscellaneous administrative expense$61

Dr cash over and short$31

Cr Cash $460

Explanation:

a. Preparation of the journal entry to establish the petty cash fund.

Dr Petty cash$500

Cr Cash $500

(To establish the petty cash fund)

b. Preparation of the journal entry to replenish the petty cash fund.

Dr Office supplies$212

Dr Miscellaneous selling expense$156

Dr Miscellaneous administrative expense$61

Dr cash over and short$31

($460-$212-$156-$61)

Cr Cash ($500-$40) $460

(To replenish the petty cash fund)

y=mx+b is the right slope of velocity carry the 4 over

answer(d) all of the choices are correct;