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Problem - The petty cash fund of $200 for Tomkins Company appeared as follows on December 31, 2010
Cash $97.60
Petty cash vouchers
Freight-in
$18.40
Postage 40.00
Balloons for a special occasion 17.00
Meals 25.00
Instructions -
1) 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 year end on December 31? Explain.
2) Prepare the general journal entry to replenish the fund.
3) On December 31, the office manager gives instructions to increase the petty cash fund by $50. Make the appropriate journal entry.
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