(Solved): The first picture is of the questions and the second is the answer. The last two statements are fals ...

Instructions The following petty cash transactions were noted by the petty cashier as occurring during April 2005: April 1- Received a company cheque for $\$250$ to establish the petty cash fund. April 15 - Received a company cheque to replenish the fund for the following expenditures made since April 1 and to increase the fund to $\$450$ a. Paid $\$78$ for janitorial service. b. Purchased office supplies for $\$63.68$ c. Purchased postage stamps for $\$43.50$ d. Paid $\$57.15$ to the County Crier for an advertisement in the newspaper. e. Discovered that $\$11.15$ remained in the petty cash box. April 30 - The petty cashier noted that $\$333.39$ remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was drawn to replenish the fund for the following expenditures made since April 15 to reduce the fund to $\$400$. f. Purchased office supplies for $\$48.36$ g. Reimbursed office manager for business auto, $\$28.50$ h. Paid $\$39.75$ courier charges to deliver merchandise to a customer. Required: Part 1: Prepare journal entries to record the establishment of the fund on April 1 and its replenishments on April 15 and April 30. Part 2: Explain how the company's financial statements would be affected if the petty cash fund were not replenished and no entry were made on April 30. (Hint: The amount of office supplies that appears on a balance sheet is determined by a physical count of the supplies on hand.) Oct. 1 Cash