Required

1. Prepare the journal entry to establish the Petty Cash fund.
2. Record the reimbursement of the petty cash fund.
3. Record the increase of the petty cash fund.

Transcribed Image Text:

Waupaca Company establishes a $490 petty cash fund on September 9. On September 30, the fund shows $200 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $59: postage expenses, $80, and miscellaneous expenses, $139. The petty cashier could not account for a $12 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 $560. Waupaca Company establishes a $490 petty cash fund on September 9. On September 30, the fund shows $200 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $59: postage expenses, $80, and miscellaneous expenses, $139. The petty cashier could not account for a $12 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 $560.

Answer rating: 100% (QA)

Question a Date Description Post ref Debit Credit Sep09 Petty Cash 490 Cash 490 To establish pe... View the full answer