Required:

1.a) Prepare the journal entry to set up the petty cash fund

.b) Prepare the journal entry to replenish the petty cash fund.

Suppose that on September 1, Lavene Motors opens a new showroom in Napanee, Ontario, and creates a petty cash fund with an imprest balance of $400. During September, Lisa Manfield, the fund custodian, signs the petty cash tickets shown below: Ticket No. Item Courier for package received Refreshments for showroom opening Computer disks Office supplies Dinner money for sales manager entertaining a customer Amount $49.67 101.00 88.07 7.50 87.50 On September 30, prior to replenishment, the fund contains these tickets plus $61.34. The accounts affected by petty cash payments are Office Supplies Expense, Entertainment Expense, and Delivery Expense