Use the information in BE7.20. Assume that Genesis decides

(a) To increase the size of the petty cash fund to $600 immediately after the reimbursement,

(b) to reduce the size of the petty cash to $250 immediately after the reimbursement.

Prepare the entries needed to record the (a) and (b) transactions.

BE7.20

Genesis Ltd. designated Alexa Kidd as petty cash custodian and established a petty cash fund of $400. The fund is reimbursed when the cash in the fund is at $57. Petty cash receipts show that funds were disbursed for $174 of supplies and $167 of freight charges on inventory purchases. Genesis uses a perpetual inventory system. Prepare journal entries for the establishment of the fund and the reimbursement.