Suppose that on September 1 Rockin Gyrations a disc jockey
Suppose that on September 1, Rockin’ Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of $450. During September, Ruth Mangan, fund custodian, signs the following petty cash tickets:
On September 30, prior to replenishment, the fund contains these tickets plus cash of $277. The accounts affected by petty cash payments are Office Supplies, Entertainment Expense, and Postage Expense.
1. On September 30, how much cash should this petty cash fund hold before it is replenished?
2. Journalize all required entries to (a) create the fund and (b) replenish it. Include explanations.
3. Make the entry on October 1 to increase the fund balance to $525. Include an explanation.
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