A small company maintains a petty cash fund for minor expenditures. The followingtransactions occurred in June and July 2014:a. The fund was established in the amount of $600.00 on June 1 from the proceeds ofcheck no. 30.b. On June 30, the petty cash fund had cash of $92.76 and the following receipts on hand:postage, $240.00; supplies, $149.64; delivery service, $74.40; and rubber stamp, $43.20.Check no. 1577 was drawn to replenish the fund.c. On July 31, the petty cash fund had cash of $132.36 and the following receipts onhand: postage, $205.20; supplies, $197.04; and delivery service, $38.40. The petty cashcustodian could not account for the shortage. Check no. 1628 was written to replenish thefund. Required: 1. Prepare the journal entries necessary to record each of these transactions 2. Additionally the company decided to decrease the petty cash limit from $600 to $550. prepare the journal entry to reflect this change.
A small company maintains a petty cash fund for minor expenditures. The followingtransactions occurred in June and July 2014:a. The fund was established in the amount of $600.00 on June 1 from the proceeds ofcheck no. 30.b. On June 30, the petty cash fund had cash of $92.76 and the following receipts on hand:postage, $240.00; supplies, $149.64; delivery service, $74.40; and rubber stamp, $43.20.Check no. 1577 was drawn to replenish the fund.c. On July 31, the petty cash fund had cash of $132.36 and the following receipts onhand: postage, $205.20; supplies, $197.04; and delivery service, $38.40. The petty cashcustodian could not account for the shortage. Check no. 1628 was written to replenish thefund.
Required:
1. Prepare the journal entries necessary to record each of these transactions
2. Additionally the company decided to decrease the petty cash limit from $600 to $550. prepare the
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