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Question - Summer LLP decided to establish a petty cash fund.
1) On May 1, Summer established a petty cash fund in the amount of $200.
2) A summary of the petty cash expenditures as of May 10 is as follows:
Delivery charges paid on merchandise purchased $60
Supplies purchased and used 25
Postage expense 40
I.O.U. from employee 17
Miscellaneous expense 36
The petty cash fund was replenished on May 10. The balance in the fund was $12.
3) The petty cash fund balance was increased $100 to $300 on May 20.
Prepare the journal entries to record the transactions related to petty cash for the month of May.
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