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Aleks04 [339]
2 years ago
9

Waupaca Company establishes a $420 petty cash fund on September 9. On September 30, the fund shows $166 in cash along with recei

pts for the following expenditures: transportation-in, $53; postage expenses, $70; and miscellaneous expenses, $123. The petty cashier could not account for a $8 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.
3) an October 1 entry to increase the fund to $450.
Business
1 answer:
Colt1911 [192]2 years ago
8 0

Answer:

Date        Account                               Debit     Credit

Sep 9      Petty cash                             $420

                       Cash                                            $420

Sep 30    Merchandise inventory        $53

                Postage expense                 $70

                Miscellaneous expense       $123  

                Cash shortage                      $8

                      Cash                                              $254

Oct 1       Petty cash                               $30  

                       Cash [450-420]                            $30

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