The petty cash fund of the Rio Agency is established at $75. At the end of the current period, the fund contained $14 and had the following receipts: film rentals, $19, refreshments for meetings, $23 (both expenditures to be classified as Entertainment Expense); postage, $6; and printing, $13.
(a) Prepare journal entries to record establishment of the fund. (Omit the “$” sign in your response):
General Journal Debit Credit
Petty cash
Cash
(b) Prepare journal entries to record reimbursement of the fund at the end of the current period. (Omit the “$” sign in your response):
General Journal Debit Credit
Entertainment expense
Postage expense
Printing expense
Cash
2.
Identify the two events that cause a Petty Cash account to be credited in a journal entry. (Click each check box twice to clear the “?”. Then, click the check box next to each answer that applies.)
The dollar amount of the fund is being reduced
The fund is being eliminated
To establish the petty cash fund
To increase the petty cash fund
