Preparation of journal entry to establish the petty cash fund.
Janet's Spa decided to establish and maintain a petty cash fund of $800 in April. During the month the following happened.
April 1. The fund was established with $800.
a. Prepare the journal entry to establish the petty cash fund.
At the end of April, the fund had $28 in it. The petty cash custodian presented receipts for
- Postage, $235
- Shipping, (Freight-out), $133
- Meals for after-hour meetings (Miscellaneous Expense), $316
- Coffee Service (Office Expense), $78
b. The custodian requested reimbursement of $772. Prepare the journal entry to replenish the fund.