Karen Johnson, the accountant of Hoop Co. of Nelson, has appointed Jim Pool as the petty cash custodian. The following transactions occurred in November:

Help Jim replenish petty cash on December 3 by providing him with a general journal entry. Support your answer and indicate whether Karen was correct.

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Cheque No. 441 was written and cashed to establish a $50 petty cash fund Paid $8.50 delivery charge for goods purchased for resale. Purchased office supplies for $12 from petty cash. Purchased postage stamps for $15 from petty cash. Nov. 25 26 28 29 To: Jim Pool FROM: Karen Johnson RE: Petty Cash Jim, I'll need $5 for postage stamps. By the way, I noticed that our petty cash account seems to be too low. Increase its size to $100 please.