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EcoMart establishes a $1,850 petty cash fund on May 2. On May 30, the fund shows $762 in cashalong with recelpts for the following expenditures:
EcoMart establishes a $1,850 petty cash fund on May 2. On May 30, the fund shows $762 in cashalong with recelpts for the following expenditures: transportation-in, $152; postage expenses, $545; and miscellaneous expenses, $400. The petty cashier could not account for a $9 overage in the fund. The company uses the perpetual system in accounting formerchandise 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 59 and credit Cash for $1,088) and (3) June 1 entry to increase the fund to $2.160. Journal entry worksheet Record the May 2 entry to establish the fund. Note: Enter debits beciore crodts. Journal entry worksheet Record the May 30 entry to reimburse the fund. Note: Enter debits bifore credits: Journal entry worksheet Record the June 1 entry to increase the fund to $2,160. Note; Enter debits before credits
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