Question

waupaca company establishes a $350 petty cash fund on september 9. on september 30, the fund shows $66 in cash along with receipts for the following expenditures: transportation-in, $53; postage expenses, $55; and miscellaneous expenses, $133. the petty cashier could not account for a $3 shortage in the fund. the company uses the perpetual system in accounting for merchandise inventory. 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 $340.

Answer 1

Answer:Please see explanation column.

Step-by-step explanation:

Being fund is established

Date Account titles and explanation Debit Credit

September 9 Petty cash $350

To Cash $350

2.Being fund reimbursement

Date Account titles and explanation Debit Credit

September 30 transportation-in, $53

Postage expense $55

Miscellaneous expenses $133

Cash shortage $3

To Cash $244

3.Using $380 to account for the increase instead of $340 given which i think is an error.

Date Account titles and explanation Debit Credit October 1 Petty cash ($380 - $350) $30

To Cash $30