E7-22 Karen’s Dance Studio created a $370 imprest petty cash fund. During the month, the

Price: $2.99

E7-22 Accounting for petty cash [10–15 min]

Karen’s Dance Studio created a $370 imprest petty cash fund. During the month, the

fund custodian authorized and signed petty cash tickets as follows:

1	Delivery of programs		Delivery expense	$25
	to customers		Postage expense	15
2	Mail package		Supplies expense	35
3	Newsletter		Miscellaneous expense	55
4	Key to closet		Supplies expense	80

Requirement

1. Make the general journal entries to

a. create the petty cash fund and

b. record its replenishment. Cash in the fund totals $147, so $13 is missing.

Include explanations.