E7-22B (Petty Cash) Velez, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.

*E7-22B (Petty Cash) Velez, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.

1. On April 1, it established a petty cash fund in the amount of $1,000.

2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows.

                               Delivery charges paid on merchandise purchased $300.00

                               Supplies purchased and used 125.00

                              Postage expense 165.00

                               I.O.U. from employees 85.00

                               Miscellaneous expense 180.00

        The petty cash fund was replenished on April 10. The balance in the fund was $135.

3. The petty cash fund balance was increased $500 to $1,500 on April 20.

Instructions

Prepare the journal entries to record transactions related to petty cash for the month of April.