The owner of Jake's Hardware Supply has decided to set up a petty cash fund for small purchases. On July 1, a cheque for $500 was issued to establish the fund.
On July 31, the fund had $305 remaining. A summary of the petty cash receipts showed the following: equipment repair expense, $72; a movie for the owner, $25; post age expense, $15; newspaper advertising, $52; miscellaneous administrative expense, $37. The owner decided the store did not need this much money left in the office and asked to have the fund reduced to $350 when the fund was reimbursed on July 31.
Prepare journal entries to record the transactions related to petty cash.