Answered step by step
Verified Expert Solution
Question
1 Approved Answer
EcoMart establishes a $1.500 petty cash fund on May 2 On May 30, the fund shows $572 in cash along with receipts for the following
EcoMart establishes a $1.500 petty cash fund on May 2 On May 30, the fund shows $572 in cash along with receipts for the following expenditures: transportation-in. $138: postage expenses. $468: and miscellaneous expenses. $330. The petty cashier could not account for a $8 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 $8 and credit Cash for $928), and (3) June 1 entry to increase the fund to $1.740. View transaction list Journal entry worksheet Record the May 2 entry to establish the fund. Note: Enter debits before credits. General Journal Debit Credit Date May 02 Record entry Clear entry View general journal
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