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Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: printing expenses, $40; postage expenses,
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17 votes
17 votes
Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: printing expenses, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 shortage in the fund.

Prepare:
(1) the September 9 entry to establish the fund,
(2) the September 30 entry to reimburse the fund, and
(3) an October 1 entry to increase the fund to $400.

User Rnmalone
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1 Answer

19 votes
19 votes

Answer: Please see explanation for answers

Step-by-step explanation:

Journal to record establishment of fund

Date Account titles and explanation Debit Credit

Sept 9 Petty cash $350

To Cash $350

Journal to record the reimbursement of petty cash fund

Date Account titles and explanation Debit Credit

September 30 printing expenses $40

Postage expense $123

Miscellaneous expenses $80

Cash shortage - not accounted for $3

To Cash $246

Journal to show the increment of fund to $400

Date Account titles and explanation Debit Credit

October 1 Petty cash $50

To Cash $50

Calculation : ($400 - $350)=$50

User Noah Stahl
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2.5k points
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