Reference no: EM132969046
QUESTION - Hay Traders established a $150 petty cash fund for small expenditures. Hay decided to replenish the account when the balance reach $80. The following transactions occurred in the first two weeks of the month of March 2020.
Date Voucher No. Description Amount $
04/03 01 Entertainment expense 50
06/03 02 Stamp and envelop expenses 10
06/03 03 Cleaning liquids and other cleaning expense 15
07/03 04 Miscellaneous expense 5
10/03 05 Postage 10
12/03 06 Travelling expense 20
13/03 07 Freight out 30
Required -
1. Show the journal entries to establish the petty cash fund.
2. Show the journal entries to replenish the fund.
3. Show the journal entries assuming that a decision was made to increase the fund to $200.
4. Prepare the petty cash book for Hay Traders, with appropriate analysis columns to incorporate the transactions shown above.