Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 47

Accounting for petty cash transactions
This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 6-44 of Chapter 6. During Tune, Lawlor Lawn Service decided that it needed a petty cash fund, Lawlor started the fund by cashing a check from her business bank account for $200. At the end of June, Lawlor had $123 in the petty cash fund. She also had three receipts, as shown:
a. Receipt for $45 from the lawn supply store for Lawn Supplies
b. Receipt for $11 from the gas station for fuel
c. Receipt for $17 for lunch with a potential client
Requirements
1. Journalize the entry to establish the Petty cash fund.
2. Journalize any entries to replenish the fund at the end of June. Add any new accounts to the chart for Lawlor that may be necessary.