a.

• Prepare the journal entry to establish the petty cash fund.

b.

• Record the reimbursement of the petty cash fund.

c.

• Record the increase of the petty cash fund.

Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $186 in cash along with receipts for the following expenditures: transportation-in, $57; postage expenses, $65; and miscellaneous expenses, $127. The petty cashier could not account for a $5 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 $490. View transaction list Journal entry worksheet Prepare the journal entry to establish the petty cash fund. Note: Enter debits before credits. Date General Journal Debit Credit Sept 09 Recordant Clearan Viwaamriwal II