Journal entries to establish the petty cash fund

Question

Petty cash

Response to the following problem:

Loucks Company established a $200 petty cash fund on October 2, 2016. The fund is replenished at the end of each month. At the end of October 2016, the fund contained $37 in cash and the following receipts:

Office supplies                       $76

Lunch with client                      48

Postage                                  20

Miscellaneous                           19

Required:

Prepare the necessary general journal entries to establish the petty cash fund on October 2 and to replenish the fund on October 31.