Problem - On August 1, 2011, Stubble Station established a $200 petty cash fund. At the end of August the petty cash fund contained:
Cash on hand $12.25
- Petty cash tickets for
postage $65.50
office supplies 104.50
miscellaneous items 19.25
Required:
a) Prepare the journal entry to establish the petty cash fund on August 1, 2011.
b) Prepare the journal entry on August 31, 2011, to replenish the petty cash fund.
c) Assume on August 31, 2011, after replenishing the petty cash fund, Stubble Station desires to increase the petty cash fund to $250. Prepare the necessary journal entry.