- Problem 1 Petty Cash Transactions - Olivia Products decided to create and use a petty cash fund. They chose Bernie McKeever to be the custodian of the petty cash fund because he was a long-time honest employee. Record the following transactions in a general journal. 4/5 Bernie cashed the check written out to Petty Cash for $1,500 to start the fund. 4/30 On this date the fund had $572 in cash. Bernie turned in the following receipts to the accounting department and was issued a check to replenish the fund. transportation-in, $138; postage expenses, $468; and miscellaneous expenses, $330. Bernie could not account for a $8 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. 5/1 Bernie was issued a check to increase the fund to $1,800.