Question 1

Question 1 [20 points] Ludwig Inc. completed the following petty cash transactions during April, 2014. April 1: Drew a $1,100.00 cheque, cashed it, and gave the proceeds and the petty cash box to Avery Wilson, the petty cashier. April 4 : Purchased office file folders, $120.05. April 6: Purchased office file folders, $159.50. April 7: Paid $146.30 for an advertisement in the newspaper. April 8: Paid $126.40 for refreshments for meetings. April 10: Purchased paper for office copier, $155.30. April 13 : Purchased ink for office photocopier, $129.20. April 16: Purchased paper for office copier, $135.35. April 30 : Avery Wilson sorted the petty cash receipts by accounts affected and exchanged them for a cheque to reimburse the fund for expenditures. However, there was $132.80 in cash in the fund. In addition, the size of the petty cash fund was increased to $1,200.00. a) Enter the journal entry to establish the petty cash fund. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). General Journal Account/Explanation Page Gj1 Credit Date F Debit b) Enter the journal entry to to record the reimbursement and the increase/decrease of the fund. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). Page Gj1 General Journal Account/Explanation F Debit Credit Date +