Howard Corporation Uses a Petty Cash System to Pay for Miscellaneous

Question 141

Howard Corporation uses a petty cash system to pay for miscellaneous expenses.Howard established the petty cash fund with $600 on March 1,2016.On March 31,2016,the petty cash fund contained $12.98.The custodian of the fund saved the following vouchers for cash payments during March 2016: The three events related to petty cash were the following: (1)establishment of the fund, (2)cash payments for petty cash expenses,and (3)recognition of expenses and replenishment of the fund. img Required: Prepare the journal entries for above events.