Exercise 235

On October 1, 2017, Finley Company establishes a petty cash fund by issuing a check for $200 to Sara Mead, the custodian of the petty cash fund. On October 31, 2017, Sara Mead submitted the following paid petty cash vouchers for replenishment of the petty cash fund when there is $7 cash in the fund:

Exercise 235 On October 1, 2017, Finley Company establishes a petty cash fund by issuing a check for $200 to Sara Mead, the custodian of the petty cash fund. On October 31, 2017, Sara Mead submitted the following paid petty cash vouchers for replenishment of the petty cash fund when there is $7 cash in the fund: $70 35 Freight-in Office Supplies Expense Entertainment of Clients Postage Expense 60 23 Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Oct. 1 (To establish a petty cash fund) 31 (To record expenses for October and to replenish the petty cash fund)