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EcoMart establishes a $ 1 , 0 5 0 petty cash fund on May 2 . On May 3 0 , the fund shows $

EcoMart establishes a $1,050 petty cash fund on May 2. On May 30, the fund shows $326 in cash along with receipts for the following expenditures: transportation-in, $120; postage expenses, $369; and miscellaneous expenses, $240. The petty cashier could not account for a $5 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory.
Prepare the
(1) May 2 entry to establish the fund,
(2) May 30 entry to reimburse the fund [Hint. Credit Cash Over and Short for $5 and credit Cash for $724], and
(3) June 1 entry to increase the fund to $1,200.
Journal entry worksheet
1
2
3
Record the May 2 entry to establish the fund.
Note: Enter debits before credits.
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