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Instructions
Question 1. Prepare the journal entry to establish the petty cash fund.
Question 2. Do a petty cash payments report for April with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
Question 3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.
Stanley Marks had the following petty cash transactions in April of the current year.
Apr 2
Request a $300 check to establish a petty cash fund.
Apr 4
Purchased paper and other supplies for the office for $48.20 that is immediately used.
Apr 10
Paid $35.20 for coffee and muffins for a weekly meeting with the staff.
Apr 12
Paid $20.15 postage to courier a special order to a customer.
Apr 14
Reimbursed Susan Snow, the manager, $60 for travel expenses for her trip to see visit customers.
Apr 28
Paid the cleaning staff $100 for the month.
Apr 30
The fund had $36.45 remaining in the petty cashbox. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
The petty cash fund amount is increased by $100 to a total of $400.
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