River’s Edge Canoe & Kayak petty cash fund was established on February 1 for $100, by writing check 1763. The accounts for which petty cash disbursements are likely to be made include Supplies, Gas Expense, Advertising Expense, Delivery Expense, and Miscellaneous Expense. 

Instructions

1. In your working papers, record the entry to establish the petty cash fund on page 12 of a general journal.

2. Record the establishment of the fund on the first line of the petty cash register, page 1.

3. Record each petty cash disbursement in the petty cash register.

4. Foot, prove, total, and rule the petty cash register on February 28.

5. Reconcile the petty cash fund. The amount in the petty cash box is $1.50.

6. Prepare a petty cash requisition. Sign your name as petty cashier.

7. Record the entry to replenish the petty cash fund by issuing Check 1798 in the general journal, page 15.

8. Record the replenishment information in the petty cash register.

9. The accountant believes the petty cash fund should be increased by $25. Record the issuance of Check 1799 on February 28.

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Date Transactions Feb. 1 Bought an $8 advertisement in the local newspaper, Voucher 101. 2 Prepared Voucher 102 for $7.50 to pay Mercury Messenger for packages delivered. 3 5 Bought adding machine tape for 75¢, Voucher 103. Paid $9.50 for flowers for an employee's birthday, Voucher 104. CONTINUE