Equipment World established a $500 petty cash fund on July 1. During the month of July, petty cash was issued in exchange for the following receipts: July 2 Supplies $65 July 10 Postage expense 52 July 17 Freight out 125 July 25 Advertising expense 47 July 28 Meals expense 70 On July 31, the cash is counted and the balance remaining is found to be $136. A cheque is issued to replenish the fund.

Instructions Prepare the necessary journal entries for July 1 and July 31.