The petty cash fund of $300 for Fielding Systems includes the followingon December 31, 2021:

Cash

$93.60

Petty cash receipts:

Freight in

$89.40

55.00

27.00

30.00

Postage

Balloons for a special occasion

Meals

Instructions

a) Briefly describe when the petty cash fund should be replenished. Because there is cash on hand, is there a

need to replenish the fund at yearend on December 31? Explain.

b) Prepare in general journal form the entry to replenish the fund. The company uses a perpetual inventory

system.

c)On December 31, the office manager gives instructions to increase the petty cash fund by $50. Make the

appropriate journal entry.