Exciting News: Havermill Co. Increases Petty Cash Fund!

As we know, Havermill Co. established a $270 petty cash fund on September 1 and replenished it on September 30. The accumulated receipts on that date represented various expenses, including $75 for Office Supplies, $141 for merchandise inventory, and $24 for miscellaneous expenses. With a balance of $30, the accountant determined on October 1 that the fund should be increased by $54.

The journal entry to record the reimbursement of the fund on September 30 includes a debit to Miscellaneous Expense for $270 and a credit to Cash for $270. This is in line with standard accounting practices where vouchers for the money used from the petty cash fund are presented and charged to the different expenses incurred.

On October 1, the journal entry for the petty cash fund increase of $54 will be: Debit Petty Cash $54; credit Cash $54. This adjustment ensures that the petty cash fund remains adequate and can cover the necessary day-to-day expenses without running out of cash.

With this exciting update, Havermill Co. is demonstrating proactive financial management by ensuring that their petty cash fund is sufficient to meet their operational needs. It's always great to see companies taking steps to stay on top of their financial resources!