Question 2

Lang Company completed the following petty cash transactions during April 2018

Date	Receipt #	For	Amount
April 10		Cheque to establish Petty Cash Fund	$100
April 15	1	Paid courier, to deliver goods sold to a customer	$14.10
April 17	2	Freight for inventory purchased(Perpetual system)	$28.90
April 19	3	Receipt from Staples for paper	$11.45
April 21	4	Receipt from Petro Canada	$38.00
April 24	5	Postage	$5.55
April 25		Fund counted, funds remaining	$4.00

Required:

1. Prepare a journal entry to record the establishing the petty cash fund.

2. Prepare a journal entry to record the reimbursement and increase of the fund to $125. (from $100 to $125)

3. Now assume, the Part 2 did not happen and the fund decreased from $100 to $75, prepare a journal entry to record the reimbursement and decrease of the fund