Preparation of journal entry to establish the petty cash fund.

Janet's Spa decided to establish and maintain a petty cash fund of $800 in April. During the month the following happened.

April 1. The fund was established with $800.

a.      Prepare the journal entry to establish the petty cash fund.

At the end of April, the fund had $28 in it. The petty cash custodian presented receipts for

• Postage, $235
• Shipping, (Freight-out), $133
• Meals for after-hour meetings (Miscellaneous Expense), $316
• Coffee Service (Office Expense), $78

b. The custodian requested reimbursement of $772. Prepare the journal entry to replenish the fund.