Fraud, Internal Control, and Cash

Setterstrom Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results.
  1. June 1: Cash in fund $1.75, Receipts: delivery expense $31.25, postage expense $39.00, and miscellaneous expense $25.00.
  2. July 1: Cash in fund $3.25, Receipts: delivery expense $21.00, entertainment expense $51.00, and miscellaneous expense $24.75.
  3. Only July 10, Setterstrom increased the fund from $100 to $130.

Instructions

Prepare journal entries for Setterstrom Company for May 1, June 1, July 1, and July 10.

Solution

Setterstrom Company
Journal Entries

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