1. Summer LLP decided to establish a petty cash fund.

1) On May 1, Summer established a petty cash fund in the amount of $200.

2) A summary of the petty cash expenditures as of May 10 is as follows:

Delivery charges paid on merchandise purchased $60

Supplies purchased and used 25

Postage expense 40

I.O.U. from employee 17

Miscellaneous expense 36

The petty cash fund was replenished on May 10. The balance in the fund was $12.

2) The petty cash fund balance was increased $100 to $300 on May 20.

Prepare the journal entries to record the transactions related to petty cash for the month of May.

Once you have finished recording the required journal entries, I would like you to find an article that relates to petty cash. You can choose something that you find in the news, a journal, and article, or on the television. Briefly describe what you find and relate it to how important it is to keep accurate records of petty cash.