Question - The petty cash fund of Tamarisk's Auto Repair Service, a sole proprietorship, contains the following:
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Coins and currency
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$18.50
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An IOU from Bob Cunningham, an employee, for a cash advance
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64.25
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A cheque payable to Tamarisk's Auto Repair from Pat Webber, an employee, marked NSF
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34.00
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Receipts for the following:
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Stamps
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$21.25
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Two NHL playoff tickets for Al Tamarisk
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146.00
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Delivery of merchandise to a customer
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12.85
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180.10
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$296.85
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The general ledger account Petty Cash has a balance of $300.00.
Prepare the journal entry to record the reimbursement of the petty cash fund and reduce the fund to $200.00, using the same entry.