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.

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