Petty Cash

On November 1, 2022, Bates & Company established a petty cash fund by cashing a check for $450. On November 30, the custodian of the fund submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $35 cash in the fund:

11/8 Parking downtown for $55.

11/11 Dinner with employees for $156.

11/17 Mailed package of marketing information to vendors for $13.50.

11/22 Purchased birthday flowers for an admin assistant for $75.

11/27 Filled up both company cars $120

A) Prepare the 11/1/2022 journal entry establishing the petty cash fund.

B) Prepare the month-end adjusting entry to replenish the petty cash fund.

C) On December 1, 2022, the company management decided to use pre-paid cards for most petty cash purchases and reduced the petty cash fund to $50. Prepare the appropriately journal entry.