On January 1, the Needcash Company establishes an impress petty cash fund by issuing a check for $400. On January 31, the custodian of the petty cash fund submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $40 cash in the fund. Freight-Out $ 117 Gas & Oil 185 Postage 29 Owner's IOU for lunch 25 (the owner, Dan Donahue, never pays petty cash back)
Required:
Prepare the general journal entries to:
A. Establish the fund on January 1
B. Replenish the fund on January 31.
C. Increase the petty cash fund to $500 on February 1.