The petty cash fund of the Wee Ones Agency was established on May 1, 2020, at $75.

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The petty cash fund of the Wee Ones Agency was established on May 1, 2020, at $75. At the end of the month, the fund contained $13 and had the following receipts: film rentals, $19; refreshments for meetings, $23 (both expenditures to be classified as Entertainment Expense); postage, $7; and printing, $13.

1. Prepare the journal entry to record the establishment of the fund.

2. Prepare a summary of the petty cash payments similar to Exhibit 7.3, and then record the reimbursement on May 31.

3. Explain when the Petty Cash account would be credited in a journal entry.

Exhibit 7.3

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Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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