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7 February, 18:59

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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  1. 7 February, 20:54
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    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
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