Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2 2.57 points Exercise 6-8 (Algo) Petty cash fund with a shortage LO P2 Waupaca Company establishes a $390 petty cash fund on September
2 2.57 points Exercise 6-8 (Algo) Petty cash fund with a shortage LO P2 Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $120 in cash along with receipts for the following expenditures: transportation-in, $50; postage expenses, $62; and miscellaneous expenses, $145. The petty cashier could not account for a $13 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 $450. No Date 1 September 09 Petty cash Cash 2 September 30 > Answer is not complete. General Journal Debit Credit 390 Merchandise inventory Postage expense Miscellaneous expenses Cash over and short 3 October 01 Petty cash Cash > > 50 62 145 13 390 70 70
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started