Answer:
See the explanation below:
Explanation:
(1) May 2 entry to establish the fund
<u>Details Dr ($) Cr ($) </u>
Petty cash account 1,050
Cash 1,050
<em><u>To record the establishment of petty cash fund </u></em>
(2) May 30 entry to reimburse the fund
<u>Details Dr ($) Cr ($) </u>
Transportation-in 120
Postage expenses 369
Miscellaneous expenses 240
Shortage of fund 9
Petty cash account 738
<em><u>To record petty cash transactions during May </u></em>
Petty cash account 738
Cash 738
<u><em>To record the reimbursement of the petty cash fund. </em></u>
(3) June 1 entry to increase the fund to $1,200.
Additional amount to add = 1,200 - 1,050 = $150
The journal entries will be as follows:
<u>Details Dr ($) Cr ($) </u>
Petty cash account 150
Cash 150
<u><em>To record the increase of the petty cash fund to N1,200 </em></u>
