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Question - In the month of August, Acton Company performed the transaction that follow
a) Established a petty cash fund in the amount of $400.
b) On August 31, the petty cash fund has cash of $55 and the following receipts on hand:
Purchases of merchandise (Purchase) ----- $196.84
Freight-in ---------------------------------------------- $76.30
Laundry service expense ------------------------ $84
Miscellaneous expense -------------------------- $7.86
The petty cash custodian is not able to account for the excess cash in the fund. A check is drawn to replenish the fund
Prepare the journal entries necessary to record the establishment and replenishment of the petty cash fund?
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