### Petty Cash Management at Lorena's Dance Studio#### OverviewLorena's Dance Studio established a petty cash fund of $270. Throughout the month, the fund custodian authorized and signed petty cash tickets for various expenses.#### Data Table OverviewThe data table includes details on the petty cash tickets that were used:- **Ticket No. 1** - **Item:** Delivery of programs to customers - **Account Debited:** Delivery Expense - **Amount:** $30- **Ticket No. 2** - **Item:** Mail package - **Account Debited:** Postage Expense - **Amount:** $15- **Ticket No. 3** - **Item:** Newsletter - **Account Debited:** Printing Expense - **Amount:** $35- **Ticket No. 4** - **Item:** Key to closet - **Account Debited:** Miscellaneous Expense - **Amount:** $50- **Ticket No. 5** - **Item:** Copier paper - **Account Debited:** Office Supplies - **Amount:** $75#### Requirements for Journal Entries1. **Initial Fund Creation:** - Create the general journal entry to establish the petty cash fund. Provide an explanation for this entry.2. **Fund Replenishment:** - Record the journal entry for replenishing the petty cash fund when cash in the fund totals $50. Include an explanation.3. **Fund Decrease:** - Assume that Lorena's Dance Studio decides to reduce the petty cash fund to $130. Record the journal entry to reflect this decrease.

A petty cash fund is a small amount of company cash that is typically kept on hand (for example, in…

← Lorena's Dance Studio created a $270 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: (Click the icon to view the petty cash tickets.) Data table Petty Cash Ticket No. Ticket No. 1 Ticket No. 2 Ticket No. 3 Ticket No. 4 Ticket No. 5 Account Debited Delivery of programs to customers Delivery Expense Mail package Postage Expense Printing Expense Miscellaneous Expense Office Supplies Item Newsletter Key to closet Copier paper Amount $ 30 15 35 50 75 Requirements 1. Make the general journal entry to create the petty cash fund. Include an explanation. 2. Make the general journal entry to record the petty cash fund replenishment. Cash in the fund totals $50. Include an explanation. 3. Assume that Lorena's Dance Studio decides to decrease the petty cash fund to $130. Make the general journal entry to record this decrease.

← Lorena's Dance Studio created a $270 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: (Click the icon to view the petty cash tickets.) Data table Petty Cash Ticket No. Ticket No. 1 Ticket No. 2 Ticket No. 3 Ticket No. 4 Ticket No. 5 Account Debited Delivery of programs to customers Delivery Expense Mail package Postage Expense Printing Expense Miscellaneous Expense Office Supplies Item Newsletter Key to closet Copier paper Amount $ 30 15 35 50 75 Requirements 1. Make the general journal entry to create the petty cash fund. Include an explanation. 2. Make the general journal entry to record the petty cash fund replenishment. Cash in the fund totals $50. Include an explanation. 3. Assume that Lorena's Dance Studio decides to decrease the petty cash fund to $130. Make the general journal entry to record this decrease.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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