Petty Cash Fund Murphy, Inc., maintains a balance of $2,200 in its petty cash fund. On December 31, Murphy's petty cash account has a balance of $223. Murphy replenishes the petty cash account to bring it back up to $2,200. Murphy classifies all petty cash transactions as miscellaneous expense. Required: What entry is made to record the replenishment of the petty cash fund? Dec. 31 (Replenish petty cash fund and recognize expenses)

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Explanation:

Miscellaneous expenses are the small and infrequent expenses which a business incurs.

Based on the question, the miscellaneous expenses is calculated as:

= $2200 - $223

= $1977

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