Problem 13 The Bozo School Petty Cash fund

Problem 13                          15 points

The Bozo School for Clowns established a $1,000 Petty Cash fund on January 2, 2014.  

At the end of January, Petty Cash fund included cash of $940.75 and receipts for the following expenditures: $22.75 for freight, $7.65 postage and $24.85 office Supplies.  

Give the following journal entries:

A)    To establish the Petty Cash fund.

B)     To reimburse the Petty Cash fund at the end of January.

C)     It was decided that $1,000 was too much money in the Petty Cash fund.  Management

wants the Petty Cash Fund balance reduced to $250.