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EcoMart establishes a $1,900 petty cash fund on May 2 . On May 30, the fund shows $790 in cash along with receipts for the
EcoMart establishes a $1,900 petty cash fund on May 2 . On May 30, the fund shows $790 in cash along with receipts for the following expenditures: transportation-in, \$154; postage expenses, $556; and miscellaneous expenses, $410. The petty cashier could not account for a $10 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 $10 and credit Cash for $1,110 ], and (3) June 1 entry to increase the fund to $2,220
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