*E7.22B (L0 6)(Petty Cash) Velez, Inc. decided to establish a petty cash fund to help ensure internal control

over its small cash expenditures. The following information is available for the month of April:

1 On April 1, it established a petty cash fund in the amount of $1,000.

2 A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows.

Delivery charges paid on merchandise purchased $300.00

Supplies purchased and used 125.00

Postage expense 165.00

I.O.U. from employees 85.00

Miscellaneous expense 180.00

The petty cash fund was replenished on April 10. The balance in the fund was $135.

3 The petty cash fund balance was increased $1,000 to $1,500 on April 20.

Instructions

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