Preparation of journal entry to establish the petty cash

Preparation of journal entry to establish the petty cash fund.

Janet's Spa decided to establish and maintain a petty cash fund of $800 in April. During the month the following happened.

April 1. The fund was established with $800.

a. Prepare the journal entry to establish the petty cash fund.

At the end of April, the fund had $28 in it. The petty cash custodian presented receipts for

b. The custodian requested reimbursement of $772. Prepare the journal entry to replenish the fund.

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