Service World maintains a petty cash fund. The fund custodian encountered the following events.

a. The fund was established when a check for $ 300 was cashed and deposited into a locked cash box.

b. An employee submitted a receipt for a customer delivery costing $ 20 and was reimbursed in full from petty cash.

c. Another employee submitted a receipt for $ 60 for locksmith repairs to the office door and was reimbursed in full from petty cash.

d. An employee submitted a receipt for newspaper advertising that cost the company $ 50. She was given $ 50 from the petty cash box.

e. The petty cash custodian received and cashed a check that fully replenished the petty cash fund.

f. An employee submitted a receipt for $ 35 for supplies and was reimbursed in full from petty cash.

g. An employee submitted a receipt for $ 65 for filling up his personal vehicle. He was not reimbursed because it would violate company policy.

h. At the end of the month, a check was given to the petty cash custodian to not only replenish the petty cash fund but also increase the total fund to $ 400.

Required:

1. Prepare any required journal entries.

2. If Service World has $ 1,000 cash, $ 500 of government Treasury bills purchased last month with a six- week maturity, and $ 750 of cash set aside for legal reasons, how much will the company report on the balance sheet as Cash and Cash Equivalents?