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Question
On October 1, 2018, Foster Company establishes a petty cash fund by issuing a check for $150 to Kim Mann, the custodian of the petty cash fund. On October 31, 2018, Kim Mann submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $6 cash in the fund:
Freight-in $20
Office Supplies Expense 40
Entertainment of Clients 60
Postage Expense 20
Instructions
Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31.
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