Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 I entry to increase the fund to $1,200. Exercise 8.9 Petty cash fund with an overage P2
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