Jackie's Dance Studio created a $220 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows:

Requirements
1. Make the general journal entry to create the petty cash fund. Include an explanation.
2. Make the general journal entry to record the petty cash fund replenishment. Cash in the fund totals $40. Include an explanation.
3. Assume that Jackie's Dance Studio decides to decrease the petty cash fund to $120. Make the general journal entry to record this decrease.

Transcribed Image Text:

Petty Cash Ticket No. Account Debited Amount Item Delivery of programs to customers Delivery Expense Mail package Newsletter Key to closet Copier paper $ 20 Postage Expense Printing Expense Miscellaneous Expense Office Supplies 10 25 4 40 70