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Suppose that on November 1, City Centre Sundials opens a new showroom in Kamloops, British Columbia, and creates a petty cash fund with an imprest

Suppose that on November 1, City Centre Sundials opens a new showroom in Kamloops, British Columbia, and creates a petty cash fund with an imprest balance of $800. During November, Al Franklin, the fund custodian, signs petty cash tickets that follow.

On November 30, prior to replenishment, the fund contains these tickets plus a cash total of $410.25. The accounts affected by petty cash payments are Office Supplies Expense, Entertainment Expense, and Delivery Expense.

Requirement 1. Make the general journal entries to (a) create the fund, and (b) replenish it. Include explanations.

Requirement 2. Journalize the replenishment of the fund.

Requirement 3. Due to the risk of robbery, make the entry on December 1 to decrease the fund balance to $575. Include an explanation. Make the entry on December 1 to decrease the fund balance to $575. Include an explanation.

image text in transcribed Petty Cash Tickets

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