Question

On April 2, Granger Sales decides to establish a $380 petty cash fund to relieve the burden on Accounting.

Required:

(a)	Journalize the establishment of the fund.*
(b)	On April 10, the petty cash fund has receipts for mail and postage of $64, contributions and donations of $36, meals and entertainment of $92, and $186 in the ending cash balance. Journalize the replenishment of the fund.*
(c)	On April 11, Granger Sales decides to increase petty cash to $520. Journalize this event.*
	*Refer to the Chart of Accounts for exact wording of account titles.

Journalize the entries for the each transactions. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT

CHART OF ACCOUNTS
Granger Sales
General Ledger
ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Equipment 192 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 541 Mail and Postage Expense 542 Contributions and Donations Expense 543 Meals and Entertainment Expense 561 Depreciation Expense 710 Interest Expense

Answer 1

Date	Description	Post Ref	Debit	Credit
April 2	Petty cash		380
	Cash			380
April 10	Mail and Postage expense		64
	Contributions and Donations expense		36
	Meals and Entertainment expense		92
	Cash Short and Over		2		=380-(64+36+92+186)
	Cash			194
April 11	Petty cash		140		=520-380
	Cash			140