Question

Exercise 6-8 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $330 petty cash fund on September 9. On September 30, the fund shows $46 in cash along with receipts for the following expenditures: transportation-in, $52; postage expenses, $71; and miscellaneous expenses, $147. The petty cashier could not account for a $14 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 $385.

Answer 1

Answer:

September 29, 202x, petty cash fund established

Dr Petty cash fund 330

    Cr Cash 330

September 30, 202x, petty cash fund's expenses

Dr Transportation expenses 52

Dr Postage expenses 71

Dr Miscellaneous expenses 147

Dr Cash short and over 14

    Cr Petty cash fund 284

September 30, 202x, petty cash fund replenished

Dr Petty cash fund 284

    Cr Cash 284

October 1, 202x, petty cash fund is increased

Dr Petty cash fund 55

    Cr Cash 55