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On October 1 2021, Wooden Company establishes a petty cash fund by issuing a cheque for $200 to Woody Wood, the custodian of the petty cash fund

Accounting

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On October 1 2021, Wooden Company establishes a petty cash fund by issuing a cheque for $200 to Woody Wood, the custodian of the petty cash fund. On October 31, 2021, Woody Wood submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $6 cash in the fund:

Freight in $27

Office Supplies Expense 83

Entertainment of Clients 58

Postage Expense 22

Instructions:

Make the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31. The company uses a perpetual inventory system.