Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $188 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $44; postage expenses, $54; and miscellaneous expenses, $144. The petty cashier could not account for a $10 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 $485.

Question

Yamilet

Business

3 June, 12:06

Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $188 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $44; postage expenses, $54; and miscellaneous expenses, $144. The petty cashier could not account for a $10 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 $485.

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Simeon Hutchinson · Answer 1

September 9, petty cash fund is established

Dr Petty cash 440

Cr Cash 440

September 30, petty cash fund expenses

Dr Merchandise inventory 44

Dr Postage expenses 54

Dr Miscellaneous office expenses 144

Dr Cash short and over 10

Cr Petty cash 252

September 30, petty cash fund reimbursement

Dr Petty cash 252

Cr Cash 252

October 1, petty cash fund increased to $485

Dr Petty cash 45

Cr Cash 45