How to solve

Problem $7-3$A Petty cash fund reimbursement and analysis of errors LO$4$

Capital Irrigation has only a general journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash transactions were noted by the petty cashier as occurring during April $2023$:

Apr. $1$ Received a company cheque for $$300$ to establish the petty cash fund.

$15$ Received a company cheque to replenish the fund for the following expenditures made since April $1$ and to increase the fund to $$400.$

a$.$ Paid $582$ for janitorial service.

b$.$ Purchased office supplies for $$78\mathrm{.}15.$

c$.$ Purchased postage stamps for $$25\mathrm{.}00.$

d$.$ Paid $$92\mathrm{.}50$ to The County Crier for an advertisement in the newspaper.

e$.$ Discovered that $$24\mathrm{.}35$ remained in the petty cash box.

$30$ The petty cashier noted that $$244\mathrm{.}95$ remained in the fund and decided that the April $15$ increase in the fund was too large. Therefore, a company cheque was issued to replenish the fund for the following expenditures made since April $15$ and to reduce the fund to $$350.$

f$.$ Purchased office supplies for $$94\mathrm{.}65.$

g$.$ Reimbursed office manager for business auto, $$45\mathrm{.}60.$

h$.$ Paid $$14\mathrm{.}80$ courier charges to deliver merchandise to a customer.

Required Prepare journal entries to record the establishment of the fund on April $1$ and its replenishments on April $15$ and April $30.$

Analysis Component: Explain how the company's financial statements would be affected if the petty cash fund were not replenished and no entry were made on April $30.($Hint: The amount of office supplies that appears on a balance sheet is determined by a physical count of the supplies on hand.$)$

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