1. The petty cash fund of the Brooks Agency is established at $ 150. At the end of the current period, the fund contained $ 28 and had the following receipts: film rentals, $ 24, refreshments for meetings, $ 46 (both expenditures to be classified as Entertainment Expense); postage, $ 30; and printing, $ 22.
Prepare journal entries to record
(a) Establishment of the fund
(b) Reimbursement of the fund at the end of the current period.
2. Identify the two events that cause a Petty Cash account to be credited in a journal entry.