Maitland Murphy an advertising agency established a petty cash
Maitland & Murphy, an advertising agency, established a petty cash fund to reduce the number of small checks that were written. On April 1, 2009, the fund was established for $400. On May 1, the petty cash envelope contained $187.23 in cash and coins and the following receipts:
Required:
(a) Record theApril1journalentryto establish the petty cash fund.
(b) Record the entry to replenish petty cash on May 1.
(c) Assume that instead of $187.23, the amount of cash in the petty cash envelope was $185.02 on May 1 before replenishment. Provide two reasons why this situation could occur.
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