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Question
On August 3, Sonar Sales decides to establish a $275 petty cash fund to relieve the burden on Accounting.
a. Journalize the establishment of the fund.
b. On August 11, the petty cash fund has receipts for mail and postage of $124.75, contributions and donations
of $53.25, meals and entertainment of $63.85, and $32.75 in cash. Journalize the replenishment of the fund.
c. On August 12, Sonar Sales decides to increase petty cash to $400. Journalize this transaction.
Answer
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