(a) Record the journal entry on September 4 to establish the petty cash fund — Brooklyn Buttons uses imprest system was established with balance 200 there were

Brooklyn Buttons uses a petty cash imprest system. The fund was established on September 4 with a balance of $200. On September 30, there were $50 cash and the following petty cash receipts in the petty cash box:

Instructions

(a) Record the journal entry on September 4 to establish the petty cash fund.

(b) Record the journal entry on September 30 to replenish the fund and decrease the balance to $150?

SOLUTION

(a)

Sept. 4 Petty Cash 200

Cash 200