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Question - On October 1, 20Y5, Pike Company established a petty cash fund by writing a check for $400 payable to "Cash". At the end of the fiscal year, December 31, 20Y5, there was $200 on hand in the petty cash fund along with petty cash receipts for the following summarized items: office supplies, $80 express charges on merchandise sold, $90store supplies, $40.
The petty cash fund was replenished on December 31, 20Y5.
Required -
a) Prepare the journal entry on 10/1/20Y5 to establish the petty cash fund.
b) Prepare the journal entry on 12/31/20Y5 to replenish the petty cash fund.
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