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EcoMart establishes a $ 1 , 4 5 0 petty cash fund on May 2 . On May 3 0 , the fund shows $

EcoMart establishes a $1,450 petty cash fund on May 2. On May 30, the fund shows $544 in cash along with receipts for the following expenditures: transportation-in, $136; postage expenses, $457; and miscellaneous expenses, $320. The petty cashier could not account for a $7 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 $7 and credit Cash for $906], and (3) June 1 entry to increase the fund to $1,680.
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