Problem: The petty cash fund was created on an imprest basis at $250 on March 1.
On March 31, a physical count of the fund disclosed $18 in currency and coins, vouchers authorizing meal allowances totaling $148, vouchers authorizing purchase of postage stamps of $31, and vouchers for payment of delivery charges of $50.
Please help with:
1. Preparing all general journal entries necessary to (1) establish the fund, (2) reimburse employees, and (3) recognize the expenses and replenish the fund as of March 31.
Journal entries may not be required for all three events
2. Explain how the cash short and over account required in this case affects the income statement.