Suppose that on April 1, Party Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of \($250\). During April, Michael Martell, fund custo¬ dian, signs the following petty cash tickets:

On April 30, prior to replenishment, the fund contains these tickets plus cash of $80.
The accounts affected by petty cash payments are Office supplies expense, Entertainment expense, and Postage expense.
Requirements

1. On April 30, how much cash should this petty cash fund hold before it is replenished?
2. Journalize all required entries to

(a) create the fund and

(b) replenish it. Include explanations.
3. Make the entry on May 1 to increase the fund balance to \($350\). Include an explanation.

Transcribed Image Text:

Amount $ 15 20 Petty Cash Ticket Number 1 2 345 Item Postage for package received Decorations and refreshments for office party Two boxes of stationery Printer cartridges Dinner money for sales manager entertaining a customer 70 33R 25 35