Ask Question
23 May, 14:55

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: transportation costs of merchandise purchased, $40; postage expenses, $123; and miscellaneous expenses, $80. 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 $400.

+5
Answers (1)
  1. 23 May, 15:12
    0
    The journal entries are shown below:

    On September 9

    Petty cash A/c Dr $350

    To Cash A/c $350

    (Being fund is established)

    On September 30

    Merchandise inventory A/c Dr $40

    Postage expense A/c Dr $123

    Miscellaneous expenses A/c Dr $80

    Cash shortage A/c Dr $3

    To Cash A/c $246

    (Being fund is reimbursed)

    On October 1

    Petty cash A/c Dr $50 ($400 - $350)

    To Cash A/c $50

    (Being fund is increased by $50)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers