On October 1, 2018, Ellington Company establishes an imprest petty cash fund by issuing a check for $200 to Erin Angelo, the custodian of the petty cash fund. On October 31, 2018, Erin Angelo submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $32 cash in the fund:
Freight-in $28
Supplies Expense 42
Entertainment of Clients 65
Postage Expense 30
Required:
a. Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31.
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