Journalize the entries to record the following. a. On July 1, check No. 12-375 issued to establish a petty cash fund of $1,100.
b. The amount of cash in the petty cash fund which is now $107. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $568; miscellaneous selling expense, $219; miscellaneous administrative expense, $173. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,100, record the discrepancy in the cash short and over account.)

Journal Entries:

a. July 1:

Debit Petty Cash Fund $1,100

Credit Cash Account $1,100

To establish the petty cash fund, via check No. 12-375.

b. Debit Office Supplies $568

   Debit Miscellaneous selling expense $219

   Debit Miscellaneous administrative expense $173

   Debit Cash Shortage $33

   Credit Petty Cash $993

To record expenses and the cash shortage.

  Debit Petty Cash $993

  Credit Cash Account $993

To replenish the petty cash fund, via Check No. 12-476.

Explanation:

Petty Cash Fund operates under the petty cash floating system or imprest system.  The first initial amount allocated for petty cash establishes the float until this is changed.  Periodically, the petty cash fund is replenished with the amount of expenses incurred from the fund in order to restore the float.

im thinking a but im not 100% sure

explanation:

the correct option is c