Reference no: EM132472350

Petty cash fund reimbursement and analysis of errors

Capital Irrigation has only a General Journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash transactions were noted by the petty cashier as occurring during April 2020:

Apr.1Received a company cheque for $400 to establish the petty cash fund. 15Received a company cheque to replenish the fund for the following expenditures made since April 1 and to increase the fund to $520.

Point a. Paid $106 for janitorial service.

Point b. Purchased office supplies for $102.

Point c. Purchased postage stamps for $34.

Point d. Paid $129 to The County Crier for an advertisement in the newspaper.

Point e. Discovered that $33 remained in the petty cash box. 30The petty cashier noted that $304 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was issued to replenish the fund for the following expenditures made since April 15 and to reduce the fund to $470.

Point f. Purchased office supplies for $129.

Point g. Reimbursed office manager for business auto, $63. h. Paid $24 courier charges to deliver merchandise to a customer.

Question 1: Prepare journal entries to record the establishment of the fund on April 1 and its replenishments on April 15 and April 30.