Shawnees Boat Club has never maintained a petty cash fund. The owner has decided that the club should have some funds available for small purchases. On May 1, a cheque for $200 was issued to establish the fund.
On May 13, the fund had $2 remaining, so a cheque was issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $75; delivery charges for clothes that will be resold to customers, $28; miscellaneous administrative expense, $95.
On May 31, the fund had $5 remaining, so another cheque was issued to replenish the fund. The owner decided to increase the fund to $400 to avoid having to replenish it twice a month. A summary of the petty cash receipts showed the following: office supplies, $38; meals for the owner, $49; postage expense, $27; newspaper advertising, $78. Prepare journal entries to record the transactions related to petty cash.

  • CreatedSeptember 15, 2015
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