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Kael Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.
Aug. 1. Established the petty cash fund by writing a check payable to the petty cash custodian for $200.
Aug15. Replenished the petty cash fund by writing a check for $175. On this date, the fund consisted of $25 in cash and these petty cash receipts: freight-out $74.40, entertainment expense $36, postage expense $33.70, and miscellaneous expense $27.50.
Instructions:
Question 1: Journalize the petty cash transactions
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