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On October 1, 2017, Foster Company establishes an imprest petty cash fund by issuing a check for $200 to Mary Mann, the custodian of the petty cash fund. On October 31, 2017, Mary Mann submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $55 cash in the fund:
Freight-in $27
Office Supplies Expense 35
Entertainment of Clients 60
Postage Expense 20
Instructions
Problem 1: Prepare the October 1 journal entry required to (1) establish the petty cash fund and the October 31 journal entries to (2) replenishment the fund and (3) record the reduction of the fund.
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